[OrcD3vil]

Ok so I purchased a Foxconn nT535 and have been using it with XBMC 11 with one slight problem of every couple minutes the video would totally go black, then the TV would pop on with the indicator of what HDMI 1080 was being used like it lost the video signal all together. Then I was like ok lets try XBMC 12 and see if the problem got fixed. Well now I'm not having that problem with TV/Movies anymore but I have another more annoying problem of when I play any Blu-Ray quality movie the video just stutters, the audio is fine but video is complete and utter crap. DVD Rips are fine, TV Shows are fine but anything that is encoded in like H.264, DTS, or etc is just unwatchable. I've went through the Frodo FAQ about looking at audio drivers to see what "Supported Codecs" are installed and I have none. I've instead the Intel Graphics Drivers and Motherboard Chipsets and nothing has change. I removed the Realtek audio drivers like the FAQ says now I just have a High Def Audio listed in device Manager. Here is the computer specs hopefully someone can get me working again I've messed with all the settings that I can think of. Let me know what more information you need and I'll provide it have this week off due to holidays and wife is at home recovering from back surgery so the pressure is on to get this working!

Foxconn Machine:

eries Atom
Dimension 190(W) x 135(D) x 24(H)mm
Processors Supported Intel D525 Dual core 1.8GHz
Chipset Intel NM10 Chipset
Memory Supported 1x SO-DIMM Socket Support DDR3 800 up to 4GB
VGA Graphics Intel® Graphics Media Accelerator 3150
Storage Interface 1x 2.5" SATA II 3Gb/s
LAN IEEE 802.11b/g/n up to 300Mbps (Dual Antenna)
Front I/O 1x SD/SDHC/MS/MS Pro/MMC 5 in 1 Card Reader
2x USB 2.0
1x Mic in (support S/PDIF-IN)
1x Headphone
Back I/O 1x RJ-45 (10Base-T/100Base-T/1000Base-T)
4x USB 2.0
1x Line-out jack.(support S/PDIF-OUT)
1x HDMI
1x VGA
1x DC in

Machine:
Windows 7 32 Bit
4gig DDR3 Ram
60 gig SSD

TV:
Dynex Dx-32L 152A11
http://www.dynexproducts.com/products/te...52A11.html

Current setup goes TV -> HDMI Cable -> TV HDMI Port 2

As I've said done a ton of reading, I've tried all the settings changes that I could find to trya nd only Blu-Ray Quality Movies are giving a problem. Could us some help to walkthrough what drivers/codec packages/etc I should have installed that I might not. I'm very computer savvy just stumped.