Optical Flow + Stabilizatoin = major jerking

I have a 30.00fps clip in a 23.98 timeline. I want to use Resolve to stabilize, and also retime with optical flow. I retimed first, and it looks fine. Then after stabilization, it's horribly jerky. Here's an example clip. It's a consistent jerk every 4th frame.
https://drive.google.com/file/d/0B52QuT ... sp=sharing

If I set retime process to 'nearest', then the stabilization works fine. Any idea how to fix this?
This footage is 720p H.264 (from a smart phone) and I have a 2.5GB GTX 570, so I doubt VRAM is an issue, nor is disk speed.

I will probably treat this as a "optical/vfx" thing:

1) do the OFlow as you wish
2) export the clip at a convenient resolution in your disk
3) re-link the exported one and place in the timeline where the original was
4) stabilize/color.

I know is not Ideal, is just a workaround suggestion.