Itunes 7.0.1 still has major problems with jerky video

I thought the newest update to Itunes 7 would fix my problems with jerky video that have begun since this Itunes 7 came out. At first I thought maybe my computer was too old (powerbook 12" 1.5 Ghz, with maxed out RAM) to play the new resolution, but then I realized that even my old TV shows had jerky playback. It doesn't seem to matter what size. The audio works fine, but the video freezes every few seconds. This is not really acceptable and I'm thinking about uninstalling Itunes 7 until apple issues a fix that address this video playback issue. Anyone have any suggestions or heard anything? Thanks!
- Tpetdoctor

I located the problem of the jerky (1 to 2 frames per second) video that started after updating to iTunes7 and 7.0.1!
Dragging (copying) the file "ATIRadeon9700GLDriver.bundle" from system/library/extensions/ to the desktop and deleting it from the extensions folder (or else simply deleting it and then dragging it from the trash to the desktop) returns normal smooth video to non-H.264 mpeg video on my second generation iMac (ATI Radeon 9600). Unfortunately, this also makes Coverflow stop working with the message "iTunes is unable to browse album covers on this computer". I'm not sure what else will be disabled by moving this file.
Obviously, this is not a solution, or even a feasible workaround. Where can I get a "good" ATI driver? I went to the ATI site "https://support.ati.com/ics/support/default.asp?deptID=894&task=knowledge&fold erID=27" and tried installing "macosx-ati-displays-4-5-7.dmg", but to no avail.

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