Hi Liquid Fusion,
I'm sorry you are experiencing issues with your video files.
Based on the information you provided, I'm not sure what to suggest. It doesn't point to an issue caused by DVD Catalyst, since the videos play fine on your OG Droid and on your computer.
While it is a possibility, I don't think Sense is causing the complication though.
You are the first one to contact me with this, but it is not the first time that an HTC device has sync issues with video playback.
A couple of years ago, they had the HTC HD2 made in 2 different factories, and in one of the factories, they used inferior parts, which caused sync issues with video playback.
The stupid thing was that on one HD2 video files work fine, and on others (from a different factory) there were sync issues.
For that purpose, I implemented an audio-delay feature (global > advanced) in DVD Catalyst 4, but using it is not something I would recommend, because it actually offsets the audio from the video (read: audio sync issue on purpose) if you enable it.
What I would suggest is this:
1. find a free video/episode on Google Play, and see if that plays fine (my guess is no).
2. download a free video player that has software decoding support (dice, mx, rock) from Google Play, and see if that plays better (play the video with software decoding).
Of course you can enable the audio delay setting as well (you might have to adjust it to get it right), but by actually encoding the file with an offset sync on purpose, the videos will be useless for anything else.
On a side-note, CRF only works with the standard and HQ/HQXT profiles. it does not do anything for the fast profile.