That sounds like the same thing that happened to me.Power DVD 8 won't play new Blu Rays now due to change in Security.Cyberlink won't provide patches anymore for Power DVD 8-9.They want you to upgrade and buy a newer one.
However the Power DVD 8 was still playing older Blu Rays from before Fall 2011 until two weeks ago with me.Suddenly it stopped playing all Blu Rays and I started getting this like with the newer disks.
You must update Cyberlink PowerDVD to continue playback of this content"
and after clicking "Yes" to that, it claims:
"Player Application update / Update complete."
and after clicking "OK" to that, nothing happens."
"Clicking the Play button at this point returns the "you must update Cyberlink ..." message and we have an endless loop."
Now no Blu Ray's will play and asks for that update.I talked to two computer guys they seem to think/indicate that new software was added that scanned yours and mine computer and saw we're using a older player and basically put a lock down on our Power DVD 8 so it can't play any disks unless you upgrade.Basically,they are forcing you to upgrade now.
So I ended up buying the brand new Power DVD 12.The player itself works for me.The only problem is I still can't play any of my Blu Ray disks(I can play DVD's on it though).I now need to go out and by a new monitor *sigh* because the one I have from 2002 doesn't have HDCP.
I double checked with CyberLink BD & 3D Advisor and the only thing I'm missing is thst HDCP.
So within the next month I'm going to buy a new HD monitor with HDCP and hopfully I'll be able to play all my Blue Ray's on my computer. *fingers crossed*
But it sounds like what's happening with your Power DVD 8 happened with mine too.Unfortuantly,there's probably nothing you'll be able to do other then to upgrade to Power DVD 10,11 or 12 Ultra.And you'll need a HD monitor that supports HDCP too.