Plays.tv has not helped me so just look at the picture for info
Do you by chance have NVIDIA graphics? If so, I fixed it by installing the drivers that came out in December rather than the most recent ones. For whatever reason, the most recent 2 NVIDIA drivers ended up making Plays run on software encoding rather than hardware encoding so the quality takes a massive hit. I don't understand why no one ever responded to your ticket or mine for that matter, but at least I figured it out on my own after a day or so of trying to figure it out.
If you are using a 980Ti and getting lag, it was a driver issue caused by Nvidia forcing Software Encoding.
Here is a driver hotfix that should resolve it: http://nvidia.custhelp.com/app/answers/detail/a_id/4405