So I have tried disabling event style - same error as listed in first post
I tried disabling exclusive access - same error
I then tried changing XBMC from WASAPI to Direct Sound so that it would not be set to exclusive (although there is no setting in XBMC for that) - same error
So I decided to completely uninstall any other players (XBMC, RealPlayer, VLC) just to see if there might be a conflict occurring and the results are no different. I keep getting that same error. I really want to love this program but at this point XBMC seems to be a lot easier to use.
If anyone else has any other suggestions I'm all ears. If you need any other info from me to assist, please ask.
Update: I tried playing Audio tracks as well and got the same error. Then I decided to enable bitstream with the HDMI option. Now the Audio plays, the Blu-rays play with Dolby TrueHD and DTS-Master, but the regular DVD's have stuttering video (the program sometimes crashes when trying to play them) and some of the Blu-rays still give me the error (Harry Potter Order of Phoenix & Goblet of Fire).
Not really sure what this all means or how to fix it.