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This is a pretty common error inside in Windows Media Player. Generally it occurs under two conditions:
Either a lot of Windows Media Player codecs, namely divX ones, are installed
AND / OR
your graphics card is not up to date and is trying to overlay the video
stream and thus getting into trouble.
To resolve this issue, first uninstall Windows Media Player, restart your computer and then install the latest version of Windows Media Player, which can be downloaded from here:
http://www.microsoft.com/windows/windowsmedia/download/
If the problem persists, open Windows Media Player and turn off
overlays. To do this, select Tools>Options>Performance tab>Advanced and then uncheck "Use overlays" and check "Use high quality mode". This is especially likely to fix the problem if it is your graphics card that is trying to overlay the stream.
More information about this error can be found here:
http://club.cdfreaks.com/showthread.php?t=119654
http://channel9.msdn.com/ShowPost.aspx?PostID=107145
http://www.moviecodec.com/topics/463p1.html
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