Ok. I think I may have fixed it. WOW this was not easy! What a cluge!
Ok, dvdxplayer apparently not only changed all my settings, it changed all my codecs. I installed multiple codec packs, uninstalled, changed video card drivers, all KINDS of stuff, nothing worked. Then I found this little gem...
I uninstalled the KLite codec pack (had it before, it is NOT the problem). Then I installed the XP Codec pack 2.5.1. It still didn't work. Well, hidden inside this little gem of a package is a program called 'Codec Detective'. I thought 'hmm, I wonder if this will at least give me info on what codecs are installed and running and how they are configured'. It does, beautifully. I found that the codecs were being held onto, still, by company called APlus. I actually just got this TODAY from giveawayoftheday.com. I like file converter utilities for watching my shows on my xbox, mp3 player, etc. Anyway, When I found that this program was hogging nearly 90% of my codecs, INCLUDING one called NV.... which is an NVIDIA driver, I was shocked! I uninstalled the program, which froze on uninstall, then I rebooted, then uninstalled again and it worked! The picture isn't perfect, but it is much better. I am still having some of the shading problems but I think I am in the right ballpark. I think I can deal with the way it is now. The key is to get 'Codec Detective' and see what crappy, 1997 program has hijacked your codecs and remove it! By hand if necessary.