The strobing you describe is

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June 20, 2012 at 7:29 pm #7283
Aaron Ledger

    The strobing you describe is the most annoying potential artifact of the telecine switching (WMC debug info shows you the switch between telecine modes as 29(soft) and 59(hard)). If you configure the nominal range registry setting for WMC, the strobing artifact should be eliminated. Disabling dynamic contrast feature in the Intel, NVIDIA or AMD drivers should also alleviate this artifact.

    In case you haven’t used it before: Add the key in Regedit: HKEY_LOCAL_MACHINESOFTWAREDebugehPresenter.dll and add the DWORD NominalRange.

    Value of 1 = 0-255 RGB; 2 = 16-235

    The judder created by the issue is another matter and unfortunately, there is no easy workaround at this time. While the transmissions are legal, I don’t believe there is really any gain in switching telecine modes in the manner that it is done in the source video. It is difficult to get traction with the content originators unless people start complaining en masse.