I got VLC because it has all the codecs to play the files I'm trying to watch including MKV. the problem I am experiencing is that in certain parts of the show the video will just freeze for several seconds while the audio plays smoothely, then finally it will return to normal. generally after this has happened once, it becomes more and more frequent and sometimes the VLC player will encounter a fatal error. I have noticed that the most often when I am encountering this problem it's at a very active point in the show liek a fight scene or something. this made me think that the problem could possibly be related to my video card but I never have any other problems playing video, only with MKV.
What you could do is install K-Lite Codec Pack Standard, and use Media Player Classic to play the MKV, and see if that works. Also you can use winamp to play MKV files, but you have to reconfig some things in winamp and still need to install K-Lite Codec Pack.
I installed K-Lite codec Pack Standard, and use Media Player Classic and my hd files still jitter and slow down.