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I have the same problem, also i can't play any movies.
I would be interested in a fix for this.

I have done the following aswell:
Uninstalled, deleted cyberlink program folders remaining also appdata folders, reboot, and reinstall. This did not work...

I will also add my info

PowerDVD full Version
PowerDVD 11.0 Ultra
PowerDVD SR Number (when click on "CyberLink in left top - SR NUMBER IS NOT THE CD-KEY!!)
I can’t get this
PowerDVD TR Number (if shown)

Operating System (including x86 or x64 Bit Version)
Windows 7 Professional x64 SP1
Do you use administrator or restricted user account?
Admin
Is your PowerDVD a Retail product or bundles with HW?
Retail
Used VGA
ATI Radeon HD 5770
Used VGA driver version
8.841
Used Audio device
ATI Radeon HD 5770 HDMI
Used Audio device driver version
7.12.0.7700
The Audio setting in PowerDVD and in OS (default devices)
ATI HDMI
Used ODD drive (full model name and Firmware Version)
Model - LITE-ON iHBS112
Firmware - CL0K
Used Display(s)
Asus VH242H
Which kind of display connection (HDMI/DisplayPort/VGA/DVI)
HDMI
Whcih Display refresh rate do you use while Playback (24/25/50/60/120/...)
60 Hz
Are you using single or dual monitor environment
Single
Are you using clone or extended mode (if use two display)
N/A
(3D only) Please provide detail info about 3D setting in PowerDVD
N/A
What kind of Antivirus SW are you using
Avast! 6.1
Which Internet Browser Software is installed
Firefox
Do you use virtual ODD (e.g Daemon Tools)
No
The detailed issue description
Black-ish rectangle covering large portion of Powerdvd screen
Also, any of the top functions do not respond, all of the bottom button react, but movie playing is halted

edit:
I found a kind of temporary fix if you don't mind the cinema mode. Opening PowerDVDcinema11.exe allows me to watch movies and i don't have a black bar
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