[forestrat]

Try previously mentioned XBMC for OUYA 12.3.2. I linked to it earlier in the thread. That seems to yield the smoothest HD playback for now. That didn't drop any frames in my 1080p x264/DTS MKV test.

Downgraded to 12.3.2 (Ouya) and also am now hard-wired (no more WiFi). Still terrible performance.
My Onkyo amp is reporting 'DTS' after changing the audio output to 'HDMI' from the default 'Analog'

Are there settings that need changing that I missed somewhere?

My test video h264_1080p_hp_4.1_10mbps_dts_unstyled_subs_monsters:
http://youtu.be/7pn21da8g7c

720p Frozen seems to run mostly fine... only 2 dropped frames after 60 seconds.