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Kevin,
You are correct. My calculations assume there is a line buffer before and after the frame buffer. This is typical of most designs but certainly not all.
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Maybe I am still just being picky, but my point was that with only a line buffer, you would need to have peak bandwidth available for the average bandwidth for one line. Your calculations were calculating the average bandwidth across entire frames. The difference isn't that big, but there is a difference. With only a line buffer, you can really only take full advantage of the horizontal blanking time, not the vertical blanking time.
bhupesh,
Have you tried running your system without the frame buffer? For example, you could try using just the clocked video input and clocked video output to make sure you have these set up correctly. As I pointed out yesterday, I think the timings in your screen shot for the output are wrong for 1280x720p50.
Once you have that working, you could try reducing your total sample size to 16 bits instead of 24 bits. This would reduce the required bandwidth for the frame buffer significantly. If the tearing goes away, this would point towards a memory bandwidth issue.
You could also try increasing the FIFO sizes for the video input and output. Version 9.0 of VIP also adds an additional option for the video output where you can set "Fifo level at which to start output" which may be an interesting setting to tweak.