This is just a guess, but for instance, PowerDVD in my XP machine for some reason selects AC3 Filter when outputting from S/PDIF when I play dvr-ms files, but when I play DVDs, it does not, even though both use the AC-3 format. It might select different filters for different type of content, even if they are the same format. Don't know if it's a bug or what.
Anyway, the OP is using PowerDVD, and toycamryj is using MPC. I don't think you can use MPC to play HD discs (yet?), so the comparison is pretty much invalid unless I missed something.
LOL! Alright, I have the whole movie of Drillbit Taylor sitting here on my computer.
His first post he says "The .m2ts files are green on playback, a very obvious sign that they are still encrypted."
Then later he posts, "I tried to play them (referring to the .m2ts files) with Nero showtime. M2TS files from another copied disc played fine, so I know Nero Showtime works."
He keeps referring to playing just the .m2ts files and in different programs, which is why I suggest the codec issue.
PowerDVD will play only the 00000.m2ts file from this movie as well as Media Player Classic.
I'm not sure what you mean by, saying MPC can't be used to play HD discs? MPC very well can be used to play their media files, which are basically the movie, .m2ts. It doesn't play the menu...of course.
I have ffdshow installed and graphedit. I am running Vista SP1 on this machine.
By default, PowerDVD will play the 00000.m2ts, main movie file for Drillbit Taylor, perfectly, audio and video. Using graphedit it tells me WMVideo Decoder DMO is being used as the Video Decoder. Now, if I open the exact same file, 00000.m2ts, from Drillbit Taylor in MPC, it plays the audio, but the video gives a complete green screen.
I fixed this by, changing the decoder from, my default of WMVideo Decoder DMO, to libavcodec in ffdshow, that now in graphedit shows, ffdshow Video Decoder. Once this change has been made, the same 00000.m2ts file from Drillbit Taylor, will now play in MPC with full video and audio, no more green screen. It also still plays in PowerDVD using the ffdshow video decoder.
Hopefully that makes more sense and fills in any gapes I left. I only offer this because I can get the green screen to appear that he is describing when playing this movie's .m2ts file. And this is how I was able to remedy it for my setup.