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Help Video Playback Lag on WiFi and Offline

I just bought a HTC desire HD and I am experiencing frame rate issues with the video playback on YouTube and on films I have transferred on the handset SD card.

I have the same videos on an old ipod touch 3G and the videos play very smoothly both on youtube and from the ipod. Could anybody give me some advice on how to sort out this issue? Also, could the class of the micro SD card be the cause?

A few things that I should note:
- I just bought the handset and its a un branded, unlocked vodafone handset
- I updates to 2.2.1 (1.75.161.2)
- I performed a factory reset and video playback still stutters

Thanks
 

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