I just bought a Blu-ray drive for my computer, and it came bundled with PowerDVD 8. It refused to play Blu-rays giving the "unsupported format" error. Long story short, it came down to the fact that I had assigned the Blu-ray drive to the letter B. B is available since floppies are a relic, and Windows 7 has no issue with the assignment (that I have seen), so why not.
If the drive is B, PowerDVD will play DVDs fine, and the computer can browse Blu-rays through widows explorer also. If I assign it to any letter after C, it will play Blu-rays. It's not exactly a big problem, but it sure is a nuisance when you don't realize what is really going on.
Does the code have some leftover assumptions from days gone by or what?