Well obviously I was mistaken too!
After trying several clips from MS website and playing them, Messages consistently says:
main debug: looking for decoder module: 27 candidates
dmo debug: found DMO: WMAudio Decoder DMO
dmo debug: DMO input type set
dmo debug: DMO output type set
dmo debug: GetOutputSizeInfo(): bytes 589824, align 1
main debug: using decoder module "dmo"
main debug: thread 4636 (decoder) created at priority 2 (input/decoder.c:159)
main debug: looking for decoder module: 27 candidates
dmo debug: found DMO: WMVideo Decoder DMO
dmo debug: DMO input type set
dmo debug: DMO output type set
dmo debug: GetOutputSizeInfo(): bytes 1382400, align 1
main debug: using decoder module "dmo"
So VLC is using Microsoft's codecs for both sound and video for all the HD samples. Now why mine works and yours doesn't boils down to these possibilities:
1. The codec is missing.
2. The codec file is corrupted.
3. The file is there and is good but not registered with Windows.
4. The versions are somehow incompatible and has occurred when the registration numbers have been corrupted in the registry or somehow have been changed between versions. But this is supposed to be a no no according to Microsoft!
In doing a search of my system the file appears to be "wmadmod.dll" unfortunately my filter manager won't identify it. GraphEdit shows only one WMAudioDecoder but doesn't give a name for the codec. It does the same thing for the video IE one codec. A bit of searching inside the file confirms that "wmadmod.dll" is the audio codec.
The file is located in your C:\Windows\System32 directory and if it exists it must be registered with the system. It is a signed file and doing a system verification for signed files may also be helpful in identifying the problem if it is corrupted, but if the file isn't there the tool will not tell you!
Assuming the file is there and not corrupted it still needs to be registered.
Open a text file and copy this into it:
%WINDIR%\System32\REGSVR32 %WINDIR%\System32\wmadmod.dll
Then save as reg.bat close the batch file and double click on it. RegServer
should come back and tell you it was successful.