Personally I find the bundled video app to be pretty useless on most installs. I've installed LXLE, both 32 and 64 bit on many different PCs and Laptops with much the same result - i.e. jerky or out of sync video playback. On the same installs, VLC always works fine so does Kodi (previously XBMC) so I don't think it is down to the hardware. Even watching DVDs its a bit hit and miss, some work, some don't, sometimes it freezes or just shuts down for no reason. Just seems buggy so I don't bother using it.
I do use a couple of netbooks (Acer Aspire 1 and Asus EEPC 1GB ram running 32 bit version) which have the same problem as the OP describes with the bundled app but again VLC and Kodi work fine.
PC I'm using at the moment has an AMD X2 250 3Ghz, 4GB memory and a Nividia GeForce 9500 PCIe video card with 1GB ram, 14.04.1 LXLE 64 bit install. Just tried to watch a video using the bundled video app and speech is out of sync. VLC and Kodi stream is fine. I would add that I do watch a lot (daily) of streamed movies and TV on my PC/laptop/netbook from a MythTV server.
The video player included in LXLE is totem, the reason for this is because many of the other default programs utilize gstreamer codecs, such as the music player and video editor. Totem also utilizes those same libraries. VLC on the other hand does not and including VLC as the default video player would bring in a whole other set of codecs, a substantial amount, adding about another 100 megs of weight to the ISO/System. I have considered SMPlayer but this results in the same type of situation as VLC since it relies on MPlayer with its own codecs. Totem is also includes a mozilla plugin as well which handle many embedded videos online. Personally I haven't had an issue with it, but perhaps it is time to investigate it's settings a bit more, corrections or improvements can probably be made in that regard. Setting the 'connection speed' in preferences and adding or removing plugins in the edit menu can make quite the difference in its streaming performance.
A suggestion based on many years of experience. There also aren't any other reports of both versions doing the same thing in the same place when attempting to install.
Your suggestion was correct! I don't understand why, but a DVDRW burned at 1x by ImgBurn successfully installed LXLE on the netbook! Now to investigate the jerky video.
I opened Menu>Preferences>Additional Drivers as you suggested earlier - the only one listed that isn't activated is "drm driver for Ceder View" which according to Intel is to do with digital rights managment for video content delivery.