Trying to look into the problem! Will update here if there is more info..
I am assuming this is the release version and not one of the betas?
Are any other formats or containers effected? Other than DivX (I assume) in a AVI container? or the divx container? Extensions denote the container.
Also if you would accomplish 3 things for me.
1. Go to Microsoft's website and in the search box type DirectX runtime. When it comes back with the info it should be the first or second on the list. Download and install the newest version. Runtime versions are released every to or three months. Then reboot your machine.
2. Right click anywhere on your desktop and select properties, Settings, Advanced then select the Troubleshoot tab, be sure that the Hardware acceleration is all the way up and the Enable write combining check box is checked. If it isn't make it so!
Then press Apply and OK! If you made changes here reboot your machine.
Now run a full DirectX diagnostic! From the start menu select run and enter dxdiag then press enter or return on your keyboard. Check all the tabs for any errors and do all the diagnostics. When you do the diagnostic for the video be sure that acceleration is on for all modes.
3. Play a commercial DVD (not sitting on a menu
) then open your Task Manager and look at the CPU usage. What is the average usage? Does the DVD play normally?
You will need to turn DirectX back on for this test. Don't forget to press Save and restart the player before the test.