Hey guys,
This has already been reported on several occasions. I've had the issue for months. Got a PM from Snide stating that disabling hardware acceleration (i.e. offloading the video to the GPU) on flash (right click the vid, settings, untick hardware acceleration). will fix it.
On OSX 10.7.2 the only way I can get this to work is on Chrome with acceleration off. Doesn't make a difference in safari, and HTML5 video is borked no matter what the browser.
Your battery life will suck, and your CPU temp will go through the roof if you're on a Macbook Pro, but the artifacts disappear. It only effects HD videos for me as well.
You can tell if you have this specific issue if the video is fine for around 18 mins, corrupted for 18 mins, then back to fine for 18 mins.
I hope this gets fixed soon, because I hate having to switch browsers for Whiskey content, and my Macbook sounds like a hovercraft if I'm watching a long video such as a TNT.
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