My WinDVD5 player stopped playing DVD files (even though I think it still played DVD disc, not sure about that) and every VOB file I tried playing, WinDVD5's player opened up and prompted "Create Overlay Failed. Please lower your screen resolution or color depth and try again.".
What worked for me was unticking my unticking "Enable write combining" (XPH/SP2/Sony/RADEON IGP 345M) as found display properties>setting>advanced>troubleshoot tab (and of course the required re-booting) and now my WinDVD5's again plays VOB's.
