m4v files freeze/hang in iTunes and quicktime

I am experiencing an issue with playing DRM protected TV shows downloaded from iTunes. I believe there is an issue with these files and QuickTime.

The issue:

The m4v file will play normally for a varying amount of time (generally between 5 and 10 minutes), then will freeze for 10-30 seconds. At this point usually the elapsed time bar will still advance, but the audio and video will totally freeze. Other applications generally will not freeze during this time , and very rarely will there be the beach ball icon. After 10-30 seconds, the video will appear to fast forward to catch up to where it should be, and the m4v file will then play normally for another varying amount of time until the freezing issue happens all over again.

This happens both in iTunes and in QuickTime.

Regular non-DRM mp4 files seem to work fine. Though I have not tried mp4 video, which is 720p like the downloaded TV shows.

I have already tried many tweaks to no avail:

Tried removing non-native plugins and codecs from quicktime (removed perian/flip4mac/etc)

Tried changing energy saver settings from better battery life to better performance

Tried QuickTime 7 and 10

Tried logging in as a different/new user

Tried replacing QuickTime 10 app and QuickTime.framework with backed up versions in time machine

Tried opening QT 10 in both 64 bit and 32 bit mode?

The problem occurs no matter what other applications are/are not running, external/built in audio, external display/laptop screen.

Obviously I cannot play the videos in VLC or other 3rd party app because it has DRM protection and VLC does not readily play protected m4v files.

MacBook Pro late 2008, Mac OS Lion (10.7.4)

2.8GHz Intel core 2 duo / 4 gb memory

Quicktime 10.1 and QT 7.7

Itunes 10.something