This fix resolves and issue where output from
Handbrake is very poor quality. It could also be described as badly distorted or scrambled. It looks like a kind of codec issue. This article explains how to fix it.
Essentially obtain this 64-bit version http://download.videolan.org/pub/libdvdcss/1.2.11/win64/libdvdcss-2.dll
and copy it to
C:\Program Files\Handbrake on a 64 bit system.
http://www.jargonfreehelp.com/fixing-handbrake/