@All who think this is a file quality issue
Answer me this, when viewing this said video on another display medium like the following
Galaxy Tab 7.7
Samsung Wave 1
Samsung Wave 3
Samsung 32" LED-TV
Apple 30" Monitor
Does not show any of the horrible quality that is on the screen shot, there are no hints of black clipping on the SuperAMOLED devices even on the list.
Playing around with VLC and adjusting the gamma/contrast/brightness to show the flaws only shows how ignorant one can really be!
@Those thinking this is purely a software issue
You might be right on those since the gamma curve on the Galaxy Note/Nexus is very incorrect as reported by Supercurio
@Those thinking this is not a hardware issue
So why did others had this resolved, especially on the Galaxy Note after a few screen replacements?
Altho this is already a non issue for me since samsung has returned my money and confirmed to me that this is an issue but everyone else is open to speculate on what they think about this issue.