Ok, well I tried all of the steps in that other thread and didn't really get anywhere.
I didn't particularly want all of that stuff on my TP anyhow. I just wanted to play H.264 videos and didn't care about the youtube and all of that other stuff.
Luckily, I've found my solution.
http://forum.xda-developers.com/showthread.php?t=467112
This program has an incredibly simple gui that will great an h.264 video formatted for the TP.
I ran it last night on the same file I've been working on.
Then, I played the video using Windows Media and it looked great with no noticeable dropping of frames.
This is perfect.
I did try to play the h.264 that I encoded in handbrake using WMP and it only played the audio, not quite sure why, but I guess if I got it to play that video, WMP probably would have played it well.
WMP has the proper qualcomm video driver to decode h.264 whereas coreplayer doesn't, so that's why h.264 plays much better using wmp.
Has anyone else who is complaining about frames dropping in h.264 video tried playing it in wmp?
I'd definitely recommend this encoder here as well.