OK, so I have MCE 2005 on this configuration:
AMD A64 3200+, 1 GB RAM, TV Wonder 550 PCI, nVIDIA GeForce 6200 with a TV out the SVideo, PureVideo Decoder.

But anytime I try to play a retail DVD, the picture fluctuates from a darker version that's flicker off to the side of the screen to perfect quality.

I have changed the codecs, no dice. I have tried other media players, VLC works flawlessly but WMP does the same thing as MCE. I've screwed around with all the settings, got all the updates and everything but I still get this. Any ideas?

Have you tried looking for a firmware update for your DVD drive? Or is this with ripped DVD's? If so, maybe try AnyDVD to circumvent any DRM crap that might be on the DVD.

This is retail DVDs from the store. Anything I've burned plays beautifully. Also anything that does not have encryption in the first place. But thanks I'll try AnyDVD.

UPDATE: AnyDVD works great, thank you very much Mitch.

Wipeout55:

This is retail DVDs from the store. Anything I've burned plays beautifully. Also anything that does not have encryption in the first place. But thanks I'll try AnyDVD.

UPDATE: AnyDVD works great, thank you very much Mitch.

Isn't it great how when you try to do things the right way you get screwed, but when you do it the wrong way it couldn't be easier?

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Just my $0.02.

Yeah, dude, "the man" cannot keep us down!