well you could say that you are getting ready for customers running windows 7 and found this problem.
by the way i am not saying to chnage the hardware out.... just that when DVD first came out when you bought a drive it would have a disk that inluded a set of codecs for dvd movie playback.
if your pc does not have the right ones media center will have issues.
does windows media player play the dvd? it may play the disk even if media center does not. if that happens this mans that media center can't find the codec.
also depending on the disk and how your system is configured you might have an issue...
for example i std format dvd if played on an hd style display could look very odd.... streched out.
is the movie wide screen or old style? what about your display?
does the movie show in full screen or less than full screen?