It looks like your CPU is the minimum required for the software. And I'm not sure what graphics card you have but when I checked it out online it looks like it's a Radeon HD 3650. That's a few generations behind the Radeion HD 5000 that PowerDVD requires. In other words I would have to say the graphics card is where you're falling short and the reason for the distorted colors when playing a Blu ray disk. Again, I'm no expert by any means. It just seems like a logical conclusion.
I don't know what all you use the computer for but if you're main deal is to watch Blu ray movies, read emails and surf the net I would say just use the WinDVD program. If you want more, like video editing or processing you're going to need more. And you could buy a new laptop for what it would cost you to upgrade yours, if it even can be upgraded.
Try going to this link:
http://www.cyberlink.com/products/powerdvd-ultra/spec_en_US.html?&r=1
It gives all the requirements needed to run the software you bought.
Again, try posting your dxdiag information on this thread and someone will probably be able to give you a more educated opinion than mine. They know what to look for in the mass of information the dxdiag file has.
Anyway, since you have the software it's a good excuse to buy a new laptop. Just be careful of the new Haswell processor. Apparently PowerDVD 13 doesn't play well with that processor "in some systems". That's where I'm at right now with my other laptop. Cyberlink is supposedly working on a patch. But there are some great deals out there now for the last generation of Intel processors. I don't know about AMD.