Try this:
1. Uninstall Quicktime 7
2. Reinstall QT 6.5.2 (instead of the newest version 7)
3. Go to EDIT>PREFERENCES>QUICKTIME PREFERENCES
4. Click the Advanced tab
5. Under the VIDEO section, select GDI (safe mode)
6. Click OK
7. Reinstall QT 7 on top of QT 6.5.2 and then…Presto!
Thanks, Scott.
NOTE: This might work by doing it all in QT 7. If this is happening to you, there is most likely an issue with your video card.