To be honest with you, I don't know if it's just my eyes, but I can't see very much difference between the two modes. There is a very slight difference in the way the blocking looks, but it's definately there in both modes. With Clip1, I see blocking in both, and on my PC - so it's just the way the video has encoded, I'm pretty sure. I think you should just up the bitrate to tackle that problem. After
You've got a very fast moving scene here and a reasonably low-ish bitrate and resolution, so blocking will be even more noticeable on scenes like this. And especially since it's animation, as blocking is made more obvious because it stands out amongst the areas of solid colour and lines. I think bitrate is the next thing to play with as well as dithering and color depth. Aren't there also some DivX tweaks somewhere for fast motion and animation? Not sure.
I can understand it being annoying, but I'd relax before you worry about hardware problems! :) If there was something wrong with your chip, I'm sure there'd be MUCH worse problems happening. Rest assured, I'm confident there's nothing wrong at all with your hardware.
Also playing a part here is the incredibly crisp and sharp screen that these Axims have. So clear that even the smallest imperfections in a video are made noticable - that's probably why you don't notice them as much on a PC, expecially if you have a CRT display. :approve:
Oh, and just to add - seeing as I ended up posting after you - Raw framebuffer without dithering - to me - shows blocking in quite a few places. Add dithering and it looks fine. i2700G is pretty much the same. :approve:
Also, I brought up the whole 24bit bit video, 16 bit screen thing in my first reply...