Audio [Q] Nook HD+/CM10.1.3// AC3 Issues

Running Nook HD+ with CM 10.1.3 and have vlc player, xbmc, and bs player pro installed, and the most I get is laggy audio and artifact filled video on some of the listed players with an 1080p MKV file with AC3 audio.

I re-encoded the file to H.264 video and AAC audio, and bam vlc plays it just fine crystal clear no artifacts no slow down. However bs player hiccups, and xbmc has just a slight lag every so often, may be able to fix with video playback settings.

My question is, is there any way to get the ac3 codec to work, or is there a work around someone could PM me?

I hate that I would have to re-encode files to work.... not sure if this would work under xbmc and out through an hdmi cable as I have seen those options in xbmc for the audio out.

Can anyone help?