“Video Error: Files needed to display video are not installed or not working correctly. Please restart Media Center and or restart the computer“
Background – I have a new MSI motherboard with integrated Intel HD 4000 hdmi graphics and Windows 8 Pro with Windows Media Center. When I had the hdmi connected to a Toshiba flat panel and used the tv out optical spdif output to my Denon receiver it worked fine except I only got stereo output from recorded tv files. I then connected the hdmi cable directly to the Denon receiver and got the above error plus the audio would loop and the video would freeze. When I tried to set up Media Center in 5.1 the test sound would stick on the first speaker and loop. The same thing would happen with live tv. When I connected it as before it would work but only in stereo.
I spent a bunch of time trying various suggestions on the net and even reinstalled everything from scratch. In the end it was a suggestion that I saw someone posted from 2010 for the Windows 7 version of WMC. I unchecked the 2 boxes in the “Visual and Sound Effects” settings of WMC and deleted the Realtek HD Audio drivers and problem solved. I then set WMC to 5.1 and everything worked perfectly though HDMI. I am amazed that the solution was so simple and that WMC apparently still has some issues with hdmi audio out.
I was not sure where to post this and could not find someone asking this particular question so I put the solution here. I hope that is ok.