Id go so far as to donate to the person who can resolve this issue!!!
It seems ive finally found another person with the same issue as me.
When using a Vista and DVICO Dual Dig 4 when ever it comes to a white background ie graphical commercial or something the picture gets stuttery
see this post .. he is the same
http://www.xpmediacentre.com.au/community/vista-media-center-software/19590-everything-great-except.html
http://www.xpmediacentre.com.au/community/tuners-vista/19599-calling-all-dvico-dual-digital-4-owners-users-money-ahead.html#post136590
We are both using different video cards and drivers ... so now im solely focused on DVICO DD4.
Any ideas/suggestions because im out .. ive tried combinations of drivers (both video and Dvico), performance tweaks for vista ... everything i can think of... (yes we know that some people hate dvico .. and the solution is to put it in the bin 
)
I dont want this issue to beat me ... it all worked fine in XPMCE 2005
I will donate to the person who can figure out the solution and im willing to do anything !!! 
Ive emailed DVICO on numerous occasions and its like hitting your head against a brick wall. Does anyone have a good contact??
Cheers
TEST