Just to confirm, the pixelation appears on import when viewing the file from within the project panel (not after placing it in a sequence)? In Premiere Pro do you see this behavior if you drag and drop the m2v file on the icon at the bottom of the project panel to create a new sequence from it? Is the sequence showing that it needs to be rendered after placing the m2v file within it? What was the prior version that did work? If you still have access to that version, do current clips still work there? I'm not sure what I'm looking for with this YouTube video?
My inclination would be this might be an instance where you might need to contact our support and provide them a sample clip for them to try recreating the behavior.
I'm moving your post to the Premiere Pro forum.
I demuxed my movie to reauthor it
You really should be going back to the original project and original media for this type of thing.
I try to explain it a bit more detailled.
Going back to source it no possible cause the movie label sends me DVDs and I do a "3 movies on 1 DVD" and sources are DVDs.
So my steps are:
1. AnyDVD: Rip DVD on Harddisk
2. PGCDemux: demux the file into .ac3 and .m2v
(3.) Adobe Premiere: IF I have to change, cut or correct the movie, I do it in Adobe Premiere CS6, if not I skip directly into Media Encoder.
4. Media Encoder: I insert the .m2v and Media Encoder to recode it. Media Encoder writes the .xmp (making an index) AND HERE IS THE PROBLEM. After It's done some szenes look like this:
In VLC they look like they should:
Media Encoder AND Adobe Premiere a getting the m2v wrong.
They disturb the picture from on of the other frame and go back to normal. This distubing can last from 2 frames to a whole minute. The Picture is really damaged without any reason.
This happens only in the adobe products. When I play the m2v with VLC or Windows Media Player it is fine and perfect.
I do the steps 1 to 4 nearly every day without any trouble, but this project seems different but I can not find the problem.
(A temporal fix was to convert the m2v into m2ts and then importing it into media encoder... but this is not the best way).