Screen black and white during overlays in PowerDVD8 when Hardware Acceleration applied

Hello people,

Hope someone can provide an answer to this riddle as it’s foxing me - tried Googling and searching here but could do with some advice.

When viewing certain movies in PowerDVD8 or WMP, menus show as black and white. Also in films with subtitles the picture goes black and white when the subtitles are on screen. I believe that subs have ‘overlays’ applied if not embedded in the picture and presumably this is true for the links in the menus? I find that I can remedy the problem by switching off the Hardware Acceleration (ATI Avivo) but this raises a couple of Qs:

  • Is this a known issue and where does the problem lie if so? My best guess is the graphics card/driver (see my PC spec in sig).
  • Is there a more elegant solution - i.e. one which will allow hardware acceleration to be applied?
  • Should I care if hardware acceleration is switched off? It doesn’t make a discernable difference to my viewing experience as far as I can see.

Most grateful for any opinions here.