(1) Simon I can only go by what is on mine and [nVidia PureVideo] is beside enable hardware acceleration,also on Mike89 so I guess it is supposed to be there.Do you have the deluxe or standard.You may have to upgrade or buy an addon pack if your using the standard model.
(2) Mike89 Sorry about causing this confusion,the nividia icon is in the tray when being used by windows media player.It is NOT in the tray when PDVD7 is being used, and as far as I know, should not be there when PDVD7 is playing.
How do you know if it is working, untick the box is probably the only way.And you will probably only see a difference when playing high definition content.
Is PDVD7 required to have PureVideo ,no.But if you do have H.264 hardware acceleration (purevideo) PDVD will support it (use it).
PureVideo is for playing high definition content,if your playing a standard dvd you will may not see much difference, if any.
Cyberlink say PDVD7 Deluxe "leverage the power of your nVidia or ATI graphics card with support for hardware acceleration" so if your graphics card has hardware acceleration it can use it. Or for high definition playback PureVideo if you have it installed.
All there saying is if you have a graphics card that has the ability to play high definition content then PDVD7 deluxe is compatible with it.
Hope that answers your concerns.