[warrenrh]

Let me echo: "So, this problem sounds a lot like mine. About 3/4 of the right-most portion of the screen has a semi-transparent static image "stuck" from the first frame of playback (that is occasionally replaced by another static frame), while you can still make out the smooth motion of the actual video behind it and is completely in sync with the 1/4 left-most portion of the screen, which appears normal. Audio is also fine."

Yep -- that sounds like what has happened to me as well.
I'm using Windows 7 Build 7100.
My Mother board is: ASUS M4A78 PRO
which has a built in Video Card: Geforce 8300 .
I use two monitors.

Like above I was using Nvidia Driver 185.85.
I tried an older driver Nvidia Driver 181.71. About the Same.
I tried the newest driver I could find Nvidia 190.38.
The newest driver was better. But there were still some dead/locked areas on the screen, and the colors were awful (mainly green, and purples).

I pretty much have now given up. Any playback or viewing (live or recorded) is Not good. But the recordings are fine, and look good when played back through other software.

*** Okay. It looks like additional tinkering I was able to get acceptable Playback.
I went to the Playback Settings, and changed the Video Render from Overlay, to 3D Accelerated.
Seems to be working okay now, with the Nvidia 190.38 Driver.