Alright, I have spent an entire afternoon and evening trying to get the videos to look decent. For some reason, mine look REALLY BAD ingame. See for yourself:

BAD!!!! I havent the slightest idea what to do. First of all, I wanted to use the PSX videos, but I couldnt find a converter for the .mov files. The STR files were fine, but that only accounted for half of the total.
Next, I tried to re-encode the videos in divx or some better format. Still, no matter what filters I used, they looked like crap. I tried that duck.exe thing, but that didnt help and I couldnt find any new filters or anything from it. Then I tried the FFDirectshow filter thing. I got some cool filters set and they worked in Windows Media Player, but when I went ingame, everything still looked the same.
I really dont know what to do. I got all the other problems fixed (though I would LIKE to be able to use FSAA without garbled text, but i can go without it for now). Can someone help me find something I havent tried?