Thanks for posting this. Briefly played with watching videos in VLC and similarly enjoyed the concept but the ghosting issue was annoying.
Ideally I'd rather have something that 'forced' a refresh periodically rather than thinking about re-encoding videos - if anyone knows how to trigger manual refresh programmatically I'd be interested (no guarantees timewise) in writing a small app to do this. Alternatively, maybe a VLC plugin could be done to achieve settings similar to what you have.
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