Tech Blog - Here is a simple howto on configuring your VLC player to play h264 or MKV files(720p and up) without lagging or with minimal lagging, for this howto I'm using VLC Media PLayer 1.1.4 running on Windows Vista.Below is are thing need to be selected on your VLC media player, this configuration are base on my experience I dont guarantee it will work for you, however if your experiencing lagging issue with video files encoded in h264 give this howto a try.
Now to the howto - open your VLC Media Player
Go to Tools > Preferences > Input & Codecs Settings > then Make sure
"Skip H.264 in-loop deblocking filter" is set to All
Then select "Show setting" at the bottom right corner of the Window click on All it should show "Advance settings" now
Click on Advanced make sure on the "Performance options" the following are selected
- "Allow only one running instance"
- "One instance when started from file"
- "Increase the priority of the process"
Now click on "Input / Codecs" -> "Video codecs"
Click on FFmpeg make sure the following is selected
Click on FFmpeg make sure the following is selected
- "Hurry up"
- "Allow speed tricks"
- "Quality level" is rd
Then click on x264 on "H.264 profile" select "main"
Thats it Hope this works for you too!

