I've tried different ATI drivers, currently I'm using the one from the cd.
I might reformat again this weekend and try a dvd first before installing any codecs and see what happens. I've tried the coreavc codec because I've read that it's one of the best, but then mkv files don't play in MCE, the only way I can get Mkv files to play in MCE is with the CCCP installed otherwise I get an unknown file type of error.
Yeah, sounds kinda familiar...and why I hate MCE. I Use PowerDVD for HD-DVD playback, WinDVD for Blu-ray and DVD's. Catalyst Media Center for video/TV recording. I paid for PowerDVD and WinDVD, they were both pretty expensive.
It can be a right pain to set up many HTPC software, and sometimes they screw with each other because of what codecs they use.
It's still not perfect...I've yet to find a software that works for everything, and it's pretty frustrating. In the end, when it comes to most video, I'll convert it to .mp4, and stream it to my PS3, now that I have one. The unfortunate truth is that the softwares that exist right now are limited in thier codec support, so there's not much to do but pick the interface you like, and covert your video to work with it, rather than covert the software to work with the video...
I was streaming to my PS3, but after some thought I figured that if/when something goes wrong with the PS3 I have to send it away to get fixed. If something goes wrong with the HTPC I can fix that on my own.
At least I don't have too much $$$ into this project so if I decide to scrap it I can easily get my money back out of it.
Well, after getting rather discourged that regular dvd's weren't playing well I figured I'd go through everything one last time.
I uninstalled all codecs and dvd would still play back with the ghost image, but when I loaded up a dvd with PowerDVD I noticed a "ad" in the upper right corner stating something about Asus Splendid. So I went into the settings and sure enough, there is a check box for "splendid", unchecked it, rebooted and popped in a dvd....plays perfect!! Arg...Asus. Why'd you torment me like this???? lol
Personally I'd like to stay with MCE so I can use my remote and not have to have a keyboard and mouse hooked up to the HTPC so I can keep my theater room nice and clean looking.
EDIT: In MCE how do I get a 4:3 dvd to stretch to 16:9?