Yeah it's not brilliant, weirdly enough before it was advertised like it is now it used would stream perfectly, but these days I get a lot of stuttering too. Guess the server they use could just be stressed.
Lovefilm has got to be the cheapest way to rent at the moment though. I agree Revels to a point, online streaming IS the future, and it DOES kick ass. But why is it so expensive compared to normal rentals???? £5 to rent a film for 24 hours on XBox Zune player, if they halved the prices I might look twice, but as it stands it's a bit of a piss take.
I just use my Lovefilm for games, got Black Ops and Medal of Honour at the moment. 9.99 for 4 games over the month 2 at a time, can't argue with that.