You have to use a 60hz mode, thats PAL60 and RGB or s-video (RGB preferred), this requires the Advanced RGB Scart cable from MS or Joytech. Also all VGA and Hi-Def (thats using the component cable (3 colored plugs) on a Hi-Def (HD) TV) modes are 60hz by default.
The videos are stuttering because they are made for 60hz and are running at 30fps or 60fps, thus the frames do not match the 25fps or 50fps of regular PAL composite signal.
If you do have the advanced scart or s-video cable, switch to PAL60 from the system blade setup.
Oh and some PAL TVs do support "NTSC" so you can switch to PAL60 even using the included composite cable, but of course composite gives lesser image clarity and color fidelity than the better cables even on a normal TV.
This post has been edited by Joergen: Jan 27 2006, 11:48 PM