Win 7 pro 64bit BSOD (dxgkrnl) when running Corel WinDVD Pro 11

I was setting up a HTPC using a HP Compaq 8200 Elite Ultraslim Desktop with an Intel i3-2125 cpu (am using the CPU for graphics) and 4 GB gskill DDR3 1333 ram. The machine is running Windows 7 Home Premium 32bit. I installed a panasonic blu-ray drive and Corel WinDVD Pro 11, updated to the most recent Windows 8 version.

I also updated the Intel graphics driver to the most current one via Windows Update, as well as all of the available Windows 7 updates.

When I went to play a blu-ray movie, I loaded the disk, Corel WinDVD Pero 11 started up, and I got a BSOD (dxgkrnl) when running Corel WinDVD Pro 11 trying to play the blu-ray disk. After booting to safe mode and shutting down and restarting to Windows, I tried a regular DVD
movie and it played through WinDVD Pro 11 with no problems.

I then tried a different HTPC that I built a year or so ago (also a HP Compaq 8200 Elite Ultraslim with an i5-2405, using the cpu for graphics as well, and 8gb ram running Windows 7 Pro 64 bit) with a Panasonic blu-ray drive and Corel WinDVD Pro 11 (Windows 8 version)...this htpc also had all Windows Updates run, including the available Intel graphics driver for the cpu. When I popped in the blu-ray disk and WinDVD Pro 11 started I got the exact same BSOD (dxgkrnl).

I had previously played blu-rays many times over the past year on this 2nd HTPC with no problems.

After the BSOD, I also for this one booted to safe mode and shut down and restarted Windows, then tried a regular DVD movie and it also played through WinDVD Pro 11 with no problems.

I then tried a 3rd HTPC (also one I built for a different TV...same specs as the 2nd one except with an i3-2125) and did not have the BSOD with that one.

The only difference I noticed between the 1st / 2nd that had the BSOD's and the 3rd that did not BSOD was that the 3rd had not had the Windows Update KB2923545 installed.

So then I went back to the 2nd HTPC and ran a System Restore and rolled it back to before the Windows Update KB2923545...and after rolling it back tried playing the blu-ray and it worked fine as it should.

So, this makes me think that there was some incompatibility issue between Windows 7 DirectX and Corel WinDVD Pro 11 introduced with installation of KB2923545. So, when Windows Update asks to install KB2923545 I just 'hide' it so it does not install...not ideal, but I'm not sure what can be done to solve the real problem.

Does anyone have any insights as to what is causing the real underlying problem and how it can be resolved? I'd prefer not to just band-aid it.

Many thanks for any help.