Some good news for you all! I seem to have got it working!
Heres my steps if any of you want to try.
1) Uninstall PowerDVD
2) Reboot
3) Install power DVD 9
4) Try to play a blu-ray, it will give you a message asking you to update and take you to an IE page where you can download version 2201. Download and save this somewhere safe.
5) Close power DVD
6) Completley disconnect from the internet ie unplug your cable or turn off wireless
7) Install the 2201 patch.
Try to play a blu-ray you will see the crap error message we were all getting forcing you to update. Click NO.
9) Without closing PowerDVD click play again. As if by magic the blu-ray will start. It seems by saying no and installing whilst offline you get around the farcical update.
I have managed to make this persist after a full shutdown and when connected to the internet so it seems to be a 1 time thing. However do NOT under any circumstances install any later patches when prompted. I did just to play devils advocate and hard to start all over again with those 9 steps.
Hope this helps