Blu Ray Video not working on Windows 7

Hi All,
I have dual-boot on my custom built machine -
Windows XP pro 32bit
Windows 7 64 bit.

Machine Config:
Core i7 920
6 GB Ram
1 TB HDD
ATI X1900
LiteOn 8X Blu-Ray Player
Apple HD 30''
AnyDVD (to remove HDCP, up to date version)
PowerDVD 9 (all up to date with patches)
ArcSoft TMT (all up to date with patches)

On Windows XP, my blu-ray disc plays video smoothly but the audio stutters and skips.
On Windows 7 64bit, the audio is beautiful but no video (black screen).

These symptoms are exact on either of the players ArcSoft or PowerDVD. I can even try WinDVD (since they came out with a new version recently)

I believe ATI x1900 should be able to handle it. It played without any issues on windows xp.

My only guess is Windows 7 is smart enough to realize my monitor is not HDCP complainant (even though I use AnyDVD).
Even if that is the case, why allow only audio??

For some reason, when playing PowerDVD, the screen flickers for a second (adjusting my screen settings it says - i dont know how to stop it from doing that). Could that be the issue. But ArcSoft doesnt seem to be adjusting anything and I still get the same issue.

Any ideas guys? I am quite stumped.
Thanks.


btw: no other process is running and cpu usage is moderate.