If you have WD memeo auto syno installed it could be that as I've seen another forum where someone had similar symptoms.
Otherwise try turning down hardware acceleration and see if that helps. Follow this guide: http://www.deskshare.com/Resources/articles/dmc_turnoffhardwareacceleration.aspx
If it works then try turning acceleration back up 1 notch at a time until you find the highest value that works.
Steve I
July 2010