Yes, that madVR setting is on by default and does not help.
interesting, I changed the LAV decoder to be DXVA2-CB from Intel Quicksync and that also solved the problem. So did DXVA2 (native), or None.
So, it seems any of the following options, independently, will solve the problem (which is dropped frames, repeated frames, and what looks like the image jumping up and down, most visible at the edges of the screen in US film DVDs ripped to MKV which are detected 29.970fps):
(1) Use any decoder except Intel Quicksync (or CUVID according to 6233638). None, DXVA2 (copy-back), or DXVA2 (native) in the hardware decoding dropdown of Lav Decoder all work.
(2) uncheck the "automatically activate interlacing when needed" box in madvr's interlacing settings
(3) check the "disable automatic source type detection" and "force film mode" in madvr's interlacing settings
(4) check the "Enable YADIF Deinterlacing" box in Lav Decoder
The following options do not solve the problem:
(1) Reducing rendering options to their lowest settings
(2) unchecking the Hardware acceleration box in Media Center Tools >> Options >> Video
(3) Any of the trade quality for performance options alone or in combination
(4) Use "if in doubt, deactivate deinterlacing" in the deinterlacing options of madVR.
One question is, which of the above 4 options are the best way (from a video quality and performance standpoint) of solving the problem? If it is option (1) (as 6233 seems to think as he convinced Matt to change the default to DXVA-CB for NVIDIA cards), which decoder is the best alternative to Intel Quicksync? I have been using the LAV YADIF deinterlacing and keeping Quicksync which provides good DXVA2 Image Downscaling. But I'm not convinced that is actually the best.
The second question is, why is this going on? Maybe nev and/or madshi can weigh in on if this might be a lav issue or a madVR issue or a Media Center issue. I do not have other media players installed to test if it is repeatable outside of Media Center.