This is probably caused by Macrovision protection.
This has nothing to do with the Kyro video chip, but with your TV-Out chip on your video card. It is either a Connexant or a Chrontel ship, and both have Macrovision protection built-in to avoid illegal copies. But in your case it is not working the way it should.
I once had a similar problem: video playback on tv only showed a black screen, while the Windows screen WAS visible on my tv.
There is a small utility to counter this, but unfortunately I have forgotten its name. It was something like "TvTuner" or something.
Does anybody else remember the name of this program?
Also, I found this to eliminate my problem:
1. Start the DVD while TV-Out is OFF.
2. AFTER you see the DVD menu in PowerDVD, turn TV-Out ON in the screen properties. I think that the "clone" mode works better than the "Windows extension" mode, but I'm not sure. Try both.
3. Then move the PowerDVD screen to your tv set by dragging it with your mouse.
Greetings;
Carl