ITunes movie playback pixelated

I started to replace some of my DVD collection by purchasing the movies from iTunes, i'm kind of wishing I never bothered.
All the movies I have downloaded so far have either failed at download (hanging in processing) or have sections of the movie that block out and pixelate really badly.
I am running the latest version of Lion on a mini mac server (quad core) and the latest version of iTunes.
Anuone had the same issue and know any fixes ??

I also have this problem, and some videos will no longer play in iTunes.
I get a message that this video is not compatible with this version of iTunes. I have to open the video in Quicktime to watch it.
Unacceptable! This hardware and software is too expensive to have these performance issues.
2011 Mac Mini, 8GB RAM, Duo core, iTunes library on NAS on wired network. Mountain Lion 10.8.2. iTunes 10.7 64 bit.

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Michael,
You saved me a lot of anquish! Thanks for the quick reply too!
I would like to reward you with a gift of a free CD for your quick and effective solution to my problem. Please send me your mailing address and I will send you a CD which I'm sure you will enjoy...
David Wirth

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ffchop wrote:
Thank you for your response. Again, it was relatively minuscule, but just noticeable enough. I will reboot it.
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Will iTunes 10.7 play my 720p HD movies on my Core Duo Mac mini that are currently on my iTunes movies playlist and playing perfectly fine in the older iTunes 10.6.3?
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In the requirements it says:
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Fingers crossed...

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For example i download movies from the internet, their format is AVI i want to convert them to a format that is accepted on my itunes, what kind of application or program do you suggest ?
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OK, so I think we're both saying the same thing here, that the image height of the movie is less than 480 pixels, and thus less than DVD quality. And in the case of 2.35:1 movies, significantly less. I suppose that when you add compression artifacts on top of that, you're really taking about substantial degradation.
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Anyway, I believe Apple is being truthful when they advertise it as 'near-DVD quality.' (however dubious a notion that might be

ITunes movie playback pixelated

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