Video playback nearly freezes my computer

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I have recently been having a problem with all video playback on my computer.

The problem is this. Most of the time when I play any video file the computer nearly freezes and hangs for 5 seconds or so. The mouse and everything is frozen, but after the 5 seconds the computer catches up and let's me move for a second, then it's back to the 5 second hang. As soon as I press stop on the video everything is fine.

I wanted to guess bad CPU, but I do not get any problems running games at 100% CPU usage. I also wanted to guess video card, but I would not be able to run morrowind smoothly either if that was dead.

I have reformatted my computer and it still has the problem. I am using the newest drivers that I know of. Both video and motherboard BIOS are running the latest version.

One thing I have noticed is that it appears to only happen when I have my 32" TV hooked up through the video out. I am running a composite cable, and there is no option to use S-Video to test. However when I disable the second "monitor" video playback works just fine.

I am planning on upgrading my computer as the release of TES4:Oblivion nears, but I would like to make use of my warrantees before they just get put in the closet.

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MSI Geforce FX 5600 (MSI Replaced my Ti4400 with this card)
MSI KT4V (MS-6712)
1152MB PC2100 RAM
Windows XP Professional w/ SP2
I am using nVidia's 77.77 drivers currently.

Also I have made sure to download the best codecs.
 
I'd really appreciate any help you can give me? Suggestions, ideas, anything?

Thank you all for your time, this problem is just becoming an annoyance.
 
perhaps the extra tv is adding a burden to your video card, thus causing the slowdowns.
 
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