Works okay for me, using PCM audio and DivX video, but it never used to, I've just tried it now 'cause you reminded me about it :-)
Never got that error message though, typically M$ will tell you nothing about what it means, and just tell you to re-install everything, thus keeping you in the dark. Your computer's internal workings are a matter that don't concern you :roll:.
What you could do is go to a PC forum, where they'll be more clued-up on any DirectX problems you may have. The usual Microsoft/Intel rules apply: make sure you've got the lastest drivers for your video card, your motherboard, pretty much everything.
Which video codec are you using?
