To the posters above:, I've opened bug id# 12222529 with Apple through the developer website.
The work around is to turn off screen sharing on your remote computer. In my case I am using an iMac to control a keyboard less and mouse less Mini hooked to my HDTV. Fortunately I had a wireless keyboard and USB mouse laying around so I am able to use the Mini but I have to use the HDTv as my screen.
Another work around is to simply launch the movie with your remote control computer and then turn off screen sharing imediately. In theory (I have not tried this), the checkerboard should go away and hopefully you've only missed a minute or two of your movie.
I think everyone agrees this is unacceptable as screen sharing worked so well on Lion and now does not.
Note: I also linked this forum discussion to the bug report.