For those of you that are rooted and still having issues, have you installed an app to speed up the read/write times on your sd card? I'm using ROM Toolbox for that option but there are other apps out there. However, after rooting and applying that change, my video was back to normal. Not sure if this is just something on my device or a possible solution. Maybe with ICS the system puts a bit of strain on the capabilities of the sd card and other resources but speeding them up allows the video to play back at full resolution. I'm also curious if a faster sd card would help for those who do not want to root.