Here it is. Last night I had an adobe guy do a remote session on my computer .... spent about 1hr changing settings, deleting previews, deleting all render files, re-importing and re-encoding... and nothing changed. From my perspective it seems that there is an issue with the 'release and refresh' memory function of playback. It plays fine for about 3-4 seconds and then, gets all choppy like a memory bank is being filled with information, but once it gets filled it cant not contain any more. Instead of it dumping the previous frames - its like it keeps it all in its memory which overloads it and makes it jumpy.
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