I know it happens in some environment. But I don't know how to fix it. Please try other movie draw method in PPDConfig.exe, or try to convert movie to other format.
Usually this error, happens when you use an incorrect splitter.
I never had this error, but here's what I recommend. 1/ Uninstall ALL your codecs (K-lite, CCP, etc). And reinstall only the K-lite codec pack: http://codecguide.com/download_k-lite_codec_pack_full.htm if it still doesn't work, please do step 2/
2/ Uninstall and reinstall or upgrade Windows media player if it still doesn't work, please do step 3/
3/ Upgrade your video drivers (I'm pretty sure it will not help but meh, why not. We've got to try.)
If you still had trouble after that. Please download codecTweakTool, generate a log with it, and copy paste it here (or on pastebin.com).
Have you done what the installer told you at the end of the installation process ? See here: http://projectdxxx.wikia.com/wiki/Windows7_inherent_problem