Picture pixalation problem after compression on Mac

I have a problem I would love help with. I ripped a purchased pre recorded disc DVD, released last year.

It is about (~8 gig). I used both DVD2oneX and Popcorn.

I compressed with both programs down to 4.1gig.
No matter what I do, the results are:
The playback appears to almost do a A/B between a:
clear/not so clear (pixelated) picture, changing every 3-4 seconds.

It only happens after trying to compress this one program. Others work fine so far. I have tried different media, record speeds, etc. on this DVD with the issue but no change.