A poor picture quality can be caused by 3 (?) factors:
1. Originally poor encoded film (no solution)
2. Not performant rendering mode (try to change rendering mode in BSplayer settings CTRL+P->Video->Video rendering->Rendering mode)
3. Poor codec (install a better codec)
In your case I doubt the problem resides in codec, but who knows.. can you tell us which codec is used when you play a movie (right-click->Options->Filters->Advanced)?
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