Video Problem

When i'm editing a video in Vegas, at one point of the video i get this weird blur coming up, click on these links to see what i'm talking about:

http://img5.imageshack.us/img5/162/blur2.png
http://img547.imageshack.us/img547/6651/blurr.png

As you can see it's really pixelated. Does anyone know what to do? I record in Fraps Full-Size and my render settings are:
http://img831.imageshack.us/img831/70/renderb.png

and my specs are:

Win 7 home premium
Service pack 1
Acer Aspire 5750G
i5-2450M
NVIDIA GeForce 610m
4.00 GB ram
64 bit system

Has anyone got a solution?

XD acers are shit dude and not good for videos or editing 4 gb ram i realy dont do editing but i know one thing acers are pure shit its probey your your video card or somthing

What do u recommend for gaming and making videos in vegas?

i have 6 gm ram nivida gforce 360m quad core and i can recorded and edit but im going to straight up tell you Acers and realy bad computers