Does that info help any guys :)
I have tried all kinds of formats DivX, XviD, AC3, MKV (H{x}264) .mov, wmv.
They all just show a black screen in the Internal renderer overlay (default) Mode.
They all play fine in all the other Video rendering modes.
And again Aero is working fine with all Video rendering modes including Internal renderer overlay (default) Mode.
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