With the new arrival of PureVideo DVD Decoder codec from nVidia, there is another option to decode mpeg2.
I tried the nVidia codec solution, and it did not work properly. Possibly because of other (unwanted) codecs installed on my machine. For the life of me I cannot uninstall those codecs and make media player work properly. Damn codecs.
What do I do?
Fire VLC and play the DVD movie, without any problems.
You have to love a standalone solution like VLC. Well done guys. VLC kicks major monkey bottom, STILL! WOOT!