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I understood that this card was a re-branded GT 9800..Wonder what I need??
Correct. The GT230 is essentially a 9800 GT architecture but made on a much smaller manufacturing process which allows higher clock speeds and far less electricity usage.
I'm quite confused on how your card is not being able to play 1080p video smoothly. Have you uninstalled your graphics and motherboard drivers and updated them with the latest versions?
I recently built a tiny micro-itx media center PC which has a little dual core 1.6ghz Intel Atom processor coupled with the nVidia ION 9300 GPU, 2gb ram, and a laptop hard drive... and it plays 1080p blu-ray quality video just fine on my home theater system.
As for programs to playback video, I always use Media Center Classic Home Cinema along with the "full" codec pack from here:
http://www.codecguide.com/download_k-lite_codec_pack_full.htm
Make sure you setup your video rendering in MPC to use these settings to get DXVA to work properly.
DirectShow Video: EVR Custom Pres. **
RealMedia Video: DirectX 9 **
Quicktime: DirectX 9 **
Also make sure you select the box which says "process priority above normal" under options as well.
And when setting up the K-Lite codec pack, try and stick with ffdshow for most video formats unless it specifically states you should pick a different option in order to get DXVA working.
Intel Q6600 G0 Quad @ 3.6ghz
EVGA 780i SLI FTW
EVGA GTX 285 FTW 1gb
8gb Corsair Dominator DDR2-1066mhz 4x2048
2x WD 74gb 16mb Raptor 10k
SATA RAID-0
2x WD 16mb 640gb SATA2 RAID-1
Sound Blaster X-FI Platinum
Win 7 Ultimate