I've always used PowerDVD for bin/cue files with dameon tools.. but I performed a clean install of windows recently and now I'm receiving this error: "PowerDVD does not support the current display mode. (DDraw Overlay mode is recommended) Please lower the screen resolution and color depth, for example, 800x600 with 256 colors. Or you may adjust the refresh frequency, for example, to 75 Hz." I tried changing the refresh rate, and my screen resolution.. but I still received the same error.. I tried playing two different files. it works fine on windows media player 10.. not sure why it stopped working with powerdvd though?
Few years ago (like 5-6) I did a clean install to solve some problems. After that, I started to have some problems that resemble yours. I solved mine by updating my video card drivers. Try it. Maybe it'll work for you too.