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Not at 1920x1080 with a half-decent encoding quality it doesn't.... run fine, I mean. Especially in high-motion scenes. If it hits peak CPU usage, then it is DEFINITELY suffering (i.e. dropping frames or building them up in queue).
FYI it was h.264 made of Blu-ray and is plenty high-quality enough for anyone. No messages of dropped frames.
How do you need to compile VLC to be able to use that?
VLC git for the old approach that consisted in fetching the decoded frames back with vaGetImage(). However, a specific video-output (VO) for VA API was developed this summer. I don't know/think it's committed, and I did not even had the time to test it yet.