i have the same problem, im running windows 7 64 bit, i have the newest version of windvd and the newest version of cyberlink power dvd, plays dvds and everything fine but will not recognize a bluray.
i have the newest version of windvd and the newest version of cyberlink power dvd, and I couldn't get either of them to work either. The trick for me was to go into windows device manager and find the Blue ray player and under properties, set the region to whatever region you are in. Once I did that, PowerDVD works great now, WinDVD does not. Under Windows 7 as well.