I am having serious trouble getting my ATI Radeon 7000 64Mb AGP card to play any video on my system. I tried installing the newest Catalyst and Omega Drivers and both would freeze my computer when trying to play video, but gaming was fine. I have recently installed the Omega 2.5.76 drivers based on the Catalyst 4.9 drivers as I was reading a blog saying that might work, but I am still having the same problems. I have tried this on three systems one running an ASUS A7N mobo with an Athon 1700 CPU, one with an ASUS P4B533 mobo with P4 2.4Ghz CPU and my current setup with an Intel board with 2.4Ghz P4 CPU.
Thanks for the suggestion but it is still not playing video. Turns out I had an old version of those K-Lite codecs but after updating them and going back to the Catalyst 6.11 drivers I still can't play any video, no MPG, AVI, DIVX, or DVD.
Try disabling video acceleration on your drivers (video drivers) use Catalyst Control Panel or by unchecking a box under performance section on Windows Media Player Options.