Video quality not clear

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When i watch HD videos it comes out grainy/blocky/fuzzy some parts will be more clear then other parts but most the time it's blurry. It does this no matter what I'm watching rather it be youtube or a movie.

I noticed it more when the darker shades from gray to black are shown with the grainy/blocky. I built a new system and I'm trying to figure out what is wrong. Does anyone know what could be causing this problem?

I did a reinstall of the video drivers, motherboard drivers and all is up to speed.

Motherboard: MSI 990XA-GD55 AMD 990X AM3+
Processor: AMD FX-8350 Eight-Core
PNY 660 ti VCGGTX660TXPB GTX
RAM: Patriot Viper 3 DDR 8GB 1600MHz (2x4GB) PV38160C8KRD
Monitor: 23 inch Gateway monitor 1920x1080 60hertz FHD2303L
PSU: Cooler Master GX Series 650W Power Supply

I thank you all in advance for any help you can provide me.

I would like to add I'm using windows 7
 

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I did try it with the other connections the HDMI is the best. I'v watched HD video and it was clear as a bell and i mean you couldn't see anything negative about the video at all. Now i see grainy blocks and not so clear video some parts blurry.

The resolution is 1920x1080 60hertz by default
no extra codecs installed
It started with youtube i was looking at the newegg videos about computer parts as i did a lot of research to build this computer and just keeping it fresh in mind. then i downloaded VLC and try to watch some videos and compare but it all turn out the same. youtube uses adobe.
I was going to ask what the best codec was maybe that will clear things up but just trying to figure out the problem first.
 
Hmmm, I doubt this is the issue but I thought I would ask it anyways, what are your temps?

Does it look like this during other things, such as games or other types of flash?

Again I doubt this is the issue but maybe try downloading MPC (Media Player Classic) and see if it does it in that.

One last thing would be to try disabling your dedicated gpu and use onboard. (sometimes thats not an option in the bios, in that case you will have to resort to taking it out physically) Oh and uninstall your 660s drivers before hand.
 

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BF3 comes in clear all the games i tried seem to be clear.
Temps GPU 67c Max full load max settings in BF3 most the time it's about 63c to 65c Fan is about 95% to 99% at this temp. FPS 60 to 80 sometimes higher sometimes a little lower. CPU 47c to 50c max load fan speed is about 75% at this temp and the load is about 47 to 50% of the cpu. Hard drive temp is about 38c seems to hold at that temp while running games. nothing is OC'ed it's all stock.

I been reading a lot about codecs would this help? What is the best codec?
 
Codecs shouldn't cause this problem I wouldn't think. Though you can try it. I know little to nothing about which codecs are better than any other so my advice is likely horribly wrong. I personally just picked up CCCP and it plays everything I want so I'm satisfied with it.
 

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I downloaded CCCP and that didn't seem to help any either. I don't understand it i was able to watch HD videos with out any shadowing/blocky/blurry unclear at all. It should be as clear as a bell but it's not.
 

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So i installed about 5 or so codecs and they all didn't help. I'm not understanding why videos don't come in clear but yet games do. I uninstall the codecs for now to be able to figure out what the trouble is.

I want to thank you mouse for trying to help me solve this problem.