Windows 7: Video plays in XP but not in Win 7

We have some CD's that were created a while ago with videos for training. The CD's contain several file types (wmv, jpg, htm, among others: see screen shot below). If you double click on default.htm the videos play without issue in Windows XP with IE7. The browser comes up and the video plays in WMP within the browser.

In Windows 7 (both 32 and 64 bit) clicking on default.htm brings up the browser but the video starts (flashes) and then immediately stops. We have tried lowering security settings, allowing active content to play from CD's, making sure that the flash plug in is enabled in IE, different monitor resolutions, among other things.
Has anyone run into this issue?

Thanks in advance,

Thonk98