Serato support figured it out.
Yes! dual g5. Here is the thread: This Works!
Hi Dj dOoOb_edstreme,
Can you try this:
1) Download movieinfobatch from here ->
www.serato.com (click link)
2) Run movieinfobatch. You will now see a window with a "Video-SL Debug Panel Enabled" checkbox. Tick this box.
3) Open Scratch Live and then open the Video-SL tab. You will now see the Debug Panel on the right.
4) There is a dropdown box labelled "yuv422". Click this and select "one" then reload the video to the deck. Does this fix the problem? If not select "off" and reload the video again.
Please let me know which of these work for you :)