I have the same problem, with the same Disk Reader, the same software and the same graphic card (everything else is the same in performance but not the same products).
I'm actually downloading WinDVD 2010, to see if it's a software compatibility problem.
I updated my motherboard BIOS, change the Disk Reader's SATA port, updated my graphic card and cleaned the Blu-Ray disk. Nothing changed for now.
My next attemps are WinDVD 2010 and use one RAM slot only.
I'll continue to post here if I find something. I expect the same from you
PS: Another software to try would be Arcsoft TMT