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For me the BD live settings are accessed by clicking the advanced button under the Blu-Ray disk tab. This just shows you the location of your BD live folder which in windows 7 should be under the
\Users\<username>\AppData\Roaming\CyberLink\PowerDVD8\LocalStorage\ with <username> being the windows login name your currently using. I can confirm that deleting the 3 directories located in this folder and then disconnecting from the internet before loading the disk will allow it to play. Hopefully Cyberlink realize this and release a fix that allow it work with out doing this. I am currently involved in a very unhelpful "help" process as I try to get them to realize this.
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