This might sound crazy but I was having the same problem, it was also with SMG. The thing was is that I could have sworn that when I tested there was no choppy video. I relized the only difference was that I tested without the Flat cable installed. To cut it short I removed the flat cable,(it made no difference if the programmer was connected) and the video cleared up. I then verified the same thing on 2 more consoles I was installing Argons on. I've gat a Pioneer 212d burner and Verbatim -R DVD's. I even removed the cable while watching the video and it cleared up instantly. I've got a thread started on this in the technical forum.
D2C 1a 1.8fw 3.2U
Thanks for that input, hopefully a fix will come soon, since having the flatcable connected is 'nice', to say the least :-)