Trying to get rid of Skippy

[Cyber Akuma]

The movies in Morrowind skip like hell. I tried everything, different cd drives, different video modes, even copyign the videos to hd and using a no cd crask, but no matter what they skip AND play pixelated. I know my movie files are find becasue when using binkplayer on them they play perfectly fine without pixelation. Anyone know why? Is it some video res or setting? Are known sound/video/etc cards not compatible? I have all the latest patches and drivers.

Thanks in advance.