I came to this forum and signed up to comment here and say that this is happening to me too, just as you describe. I have both V1 Fuzes and V2 Fuzes, and it's happening on both. It had to have started with a daily build in the past few weeks. I don't know exactly which one, but right now I'm running r29052-110114 on my Fuze V1's and 29051-110113 on my Fuze V2's. Both of them freeze within a second of playing a video file, but a few weeks ago, they played videos perfectly. I generally update to the latest build every day.
Should I submit a bug report too? How do I do that? Thanks.