Would you be able to post one screen shot with VLC playing a video perfectly and WMP with those red dots you mentioned earlier?
Also I'm not quite sure what is wrong with the picture above? Is it to do with those tiny dots that are vertically pointing down the screen?
I myself prefer to use VLC for playing all of my video files, but if you still want to fix WMP you could try this:
Windows 7 Codecs Pack for Windows Media Player WMP12 and Media Center
- If you have a codec pack installed, uninstall it. Restart your computer then reinstall it again.
- If you don't have a codec pack installed, you can download one from:
Note: Codecs are special instructions that help WMP play video files that you wouldn't be able to play normally. This might help you play some avi videos and some of your camcorder videos.