I tried VLC Player on Windows 7 64-bit version and the playback was fine, but when the video is maximized the image is very pixelated. I tried this on a Radeon HD 2600 XT graphics card as well as a computer with an Intel graphics chipset and both have the same result.
If I use VLC Player on Windows 7 32-bit instead of 64-bit, there is no pixelation.
Is this a known problem or is there any method to fix it on Windows 7 64-bit?
Update: there isn't a 32-bit vs 64-bit version of VLC player, is there?  (unlike 7-Zip)
I also tried GOM Player and it doesn't have the problem on Windows 7 64-bit.
Update: Nov 4, 2009
  VLC displays an update notice:
  
  VLC 1.0.3 is a minor release fixing
  many bugs, especially for Windows Vista
  and 7, but it also introduces 2 new
  modes for deinterlacing, and a new
  udev module. Major fixes are about WMA
  Pro support, Dolby tracks in 4.0,
  v4l/v4l2 and atsc and a crash in mjpeg
  demuxer. Update of translations are
  also part of this release.