I think I found the best web post ever!!!! lol
I've been visiting the Pocketables.net website for quite some time and like 3 weeks ago I decided to check the forums (I just visited the site for the reviews, unboxing of gadgets, etc.)... boy am I GLAD I did.
If you have a netbook then you know that yes, although you can play Divx, Xvid movies, MKVs or High-Def videos are out of the question. They become choppy and unwatchable. I followed the instructions on this post:
Improve Video for Sony Vaio P
and I'm watching a 720p video of Marquez vs Paquiao II without stuttering!
BRILLIANT! Although the instructions are for a Sony Vaio P using Windows XP, the method works for my netbook (Toshiba NB-205 with a different graphics chipset), the only step you have to skip is, TO NOT DOWNLOAD THE VIDEO DRIVERS supplied on the link!! Other than that, download: CoreAVC, KMPlayer and set the software as per the pictures on the post (which I wont post here since the post is not mine!)
If you have a netbook, I really recommend this!!!