yep, likely to be the video card.
You don't say what video card is installed but on a Notebook it is likely to be a card integrated onto the motherboard with shared RAM. In fact looking up your model, if it is the one with the ATI Radeon™ Xpress 1200 graphics card, then that is an onboard card, and that's not likely to play high performance HD video very well.
Sorry. These notebooks are more designed for those 'on the go' to do work or to fill in time, but not for heavy work.
Mark
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