"overlay failed" warning
I struggled with overlay problems for a while. When I first installed BSPlayer it worked fine, then at some point something changed and I couldnt get the overlays to work properly. I read quite a few messages on this board as well as the faq without finding a fix. I started to suspect some kind of directx issue (electricsheep screensaver stopped working as well). I updated directx and the problems remained, HOWEVER, when I went into the diagnostics program, directdraw was disabled. No clue how this happened. So here's my fix, hopefully it'll help someone.
Start -> Run -> "dxdiag"
Click "Display" tab
Make sure directdraw acceleration is enabled.
(Direct 3d was disabled for me as well. I enabled it but I can't imagine it would matter for divx)
I found this fix here:
http://spt1.intervideo.com/php/searchnext.php?pid=262
There are some other tips that might help someone with bsplayer overlay problems on that page.
Maybe it would be good to include this info in the faq..... ?