Just noticed that I have an older Beta version installed on another drive for some reason, the film viewer version that was automatically firing up was 2.07p4 from that build, May 2006.
Things look better on the actual 2.11 version of the film viewer.
I recommend all people having jitter/warp problems check their version (Help > About) and make sure they've got the latest one linked. If not, you can right click an AHF file, select "Open With", then click "Browse" and browse to ahfilm.exe in the directory that your current version resides in. Also make sure that you tick the "Always use the selected program..." box.
The default installed location for the ahfilm.exe file is C:\Program Files\HTC\Aces High II\ and the correct file datestamp is 9/19/2007 12:30 PM
I suspect that since a certain version of AH, the call in the setup that updates the ahf file association is no longer made, and if you install to a different location, it will use the old ahfilm if not overwritten.