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I've only discovered this today, so I haven't had the chance to test it extensively. But I made a short video demonstration. It's not pretty, but it gets the point across.

http://youtu.be/bMrVSo09864

Recovery and Fill Light sliders were bumped to 100 in both videos. I use 2010 process.

Also, what you mean by "grade my H.264 videos in ACR?" How is that possible?

ACR doesn't only import RAWs, but also other image formats. So I convert my video clip into a TIFF sequence which I then import into AE and grade it with ACR, like I'd do with a RAW sequence (see this video for more http://youtu.be/9PlKQnkQ12E).

[it solved the flickering issue for me!]

Saw this in the RAWMagic thread. Looks like it could be a solution, if it could be implemented in one of the raw converter tools

"I have a suggestion, which may or may not be a good idea!

It concerns a possible fix for putting the CDNG's through ACR, which sometimes causes exposure variances, even with using Process 2010 in ACR. It seems that ACR needs the lightest and darkest points in the frame to be constant, otherwise any highlight or shadow recovery causes the exposure shifts.

If RawMagic could add another 2 lines to the image, say a pure white one at the top and a pure black one at the bottom, this would fool ACR into treating the high and low point of all the frames as the same (because they would be the same!)"

Yes, I tried this and it solved the flickering issue for me!

I have to add that I don't use Magic Lantern and RAW video, though. I just grade my regular H.264 videos in ACR and AE. But since it seems to be an issue with ACR, this should work with RAW footage as well.