New HTPC Can't play mkv

Hi There,

Just built new HTPC to fairly high spec.

AMD Phenom II 955 3.2
Asus M4A78-HTPC (intergrated graphics HD3200) motherboard
600W PSU
1x350GB HDD for operating system
Windows 7 64bit

Problem i'm having is that it struggles playing my 1080p MKV files. I've used VLC, XBMC and Media Player and tried using different codecs such as CCCP.

Any ideas as to why this is happening. It's driving me crazy.
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More about htpc play
  1. Integrated graphics are VERY marginal for those files.
    I had to play with settings to get a HD 2400 128mb discrete card to play them , but it does.
    I use K-lite codec pack and let them install mpc internal hardware acceleration for h.264 on install. Then in options of MPC, output, I select old renderer. This is what got them playing smooth for me, over a network also.
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