It's not your dvd drive, it's either
1. your dvd playing software or
2. your graphic dirvers / chipset.
To put it simply, the program is asking windows for extra graphic memory to show the video in, and windows is saying no.
Try to play a dvd with another player (PowerDVD is my personal choice) as yours might be dodgy.
Go to your laptop makers site and see if there are updated drivers. If there isn't any then try lowering the resolution your using and try again. Maybe this will free up enough memory to help, or go into your BIOS (it will tell you what to press then you first turn it on) and see if you and increase the graphic memory size (hint - try for 64 meg if you can spare it).