This has been something that jackun was working on a while back. it seems the encoding and decoding of b frames are set to different orders. I cant recall of he was able to get that working or not.If I use b-frames and save a VOD, both MPC-HC and VLC will drop frames and blur the picture.
core warning: picture is too late to be displayed (missing 101 ms)
setting b-frames to 0 fixes the problem. Radeon 7790.