MMC7 File Player and mpg's

I have an AIW 8500.
Untill now, I have only captured and played video as Mpeg 1.
I recently started using Mpeg 2 (DVD quality) as I now have a DVD burner.
I have MMC 7 (File Player 7.6). This was the no-DVD version along with the
separate DVD player. Not sure which version the drivers are but they all have
6.14.10.6196 in system properties.
I can capture mpeg2 DVD quality with no problems and no frames dropped but can't
play them in File Player very well. They play very jerky as if FIle Player can't
keep up. I can play them in Windows Media Player with no problem - smooth as
silk.
Any idea what the problem is?


System -
Win98SE, 1.3GHz, 512MB, AIW 8500, 80GB ATA 100 hard-drive, DX8.1