UPDATE:
I had numerous issues caused by the fact that I had kernel debugging ENABLED thru BCDEDIT. If you have debugging enabled, then you cannot use PowerDVD (or any DVD-related application.)
I wasn't even connected to a debugger physically, but I still had the problems.
To check for this:
Open a CMD window
Type "bcdedit"
At the bottom, you'll see an option called DEBUG. If this is set to YES then you cannot use PowerDVD.
Turn this off by typing: "bcdedit /debug OFF"
Then reboot your computer.
I've asked Cyberlink to fix PowerDVD9 so that it detects this setting before launching the application. I've also recommended a FAQ be made on this matter as well.