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I'l try to Answer as many as possible.
To start I am using Windows Vista on my notebook and I have it setup as an HTPC for my 50" TV.

DVD Playback - I have noticed from time to time interlacing, but for the most part everything works great. I do watch all of this through Media Center though.

DVD - Playback The default MS codec seems to work very well for me.

Codec issues for Divx and Xvid - ffdshow

How to play DVD rips -
Registry key - HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Media Center\Settings\DvdSettings
Registry value - ShowGallery
Registry value data type - REG_SZ
Registry value data - Gallery = enable My DVDs; Play = do not enable My DVDs

Open With - I still have it when I right click on a file.

Power Settings - Yeah, I am not a fan of new power settings, yet.

Minor hardware changes - I havent seen any issues yet. I am using Standard Dell machines with just a few hardware changes. Maybe minor is a relative term?

Media Center and media issues - I recommend going to http://thegreenbutton.com. I have been able to make a fully working Media Center grabbing two HD channels from OTA and playing Divx, Xvid and Dvds right from my computer.
Posted by jeff@...
9th Jan 2007