It looks like Vista MCE no longer plays DVD folders. If I go into a folder that used to play just fine on MCE 2005 Vista MCE just shows me the video_ts folder. Go into that and it says no video files were found. Ouch. Anyone else get it to work?
I can play DVDs from a folder using Media Player by opening the vob file, so Vista understands DVD as previously reported. Yay, no more mpeg-2 codec messing. I haven't installed any other codec's on the machine.
I hate to put on my tin foil hat, but you really have to wonder why MS did this.