[brazen1]

"The Matrix" file works perfectly well in DSPlayer + madVR.
Unfortunately, The same "The Terminator II - Judgment Day" file from above plays *horrible*(!) in DSPlayer + madVR.
Essentially, it is unplayable. Stutters very hard and there is no sound.

This sounds like lack of RAM to me even if madVR is relaxed.  I would test exactly the same in Windows Explorer using an MPC player and see if DSP is the culprit or the RAM.  I assume the two files are not subpar rips either.