The Cyberlink MPEG-2 decoder that is included in the K-Lite pack works fine for playing DVDs. If it doesn't work for you, then its the fault of BSPlayer or something else broken on your computer. You can probably fix the problem by updating BSPlayer to a more recent version.
The display problems you have are usually caused by buggy drivers. Update your drivers. It can also help to change the video renderer in BSPlayer options.
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