Thanks Jamie for the response. Not sure I am following it though. Here is what I see when I open Set Program Access and Defaults.
Under Custom I see following programs and their states....
Choose default Web Browser, email program, media player, IM and VM for Java.
Under Media Player I see following choices...
Selected is 'Choose my current media player'
Media Center DVD, MC Music, MC Radio, MC TV, MC Videos, Online Spotlight, QT Player, WM Player and Real Player. All of these have check marks against 'enable access to this program' and none of these are checked.
What exactly I do to see MyDVDs option in MCE?