I'm the friend Molly meant. And about macroblocks, I have no idea what you mean.

There really shouldn't be anything that bad surely.

I think you might just be doing something wrong.

Unless you think some of the intact noise are macroblocks?

Or perhaps your player is poorly upscaling when playing in full screen?

Which can happen if you don't have some certain DirectX updates installed,

which CCCP should nag you about when installing that codec pack.

At any rate, it should just look like this: