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Other than the annoying animation you get when selecting a menu item, my SMP reacts quite fast. I’ve wrote this before: a friend of mine had sluggish UI and lockups that stopped when he swapped his expensive HDMI cable to a non-brand one. No gurantees.
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Let’s see how many people vote on this. Personally I’m also always on AUTO.
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Usually TS has less problems than MKV. Depending on a file’s FPS you’d need to be on AUTO for proper playback to avoid pulldown issues.
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Press the option key during playback. As Tony said, it works only on text subs, not on VobSub/PGS which is a shame since this could compensate for overscan/resolution issues (AFAIK is only possible on XBMC)