No video in Live/Recorded TV

When I try to run Live TV or play an old Recording in my XP MCE 2005, it just shows a red screen while audio plays smoothly.
The same recorded videos play properly in Windows Media Player.
I think this happened after I installed an update which sounded something like KB089250 "Rollup for Update Rollup 2" on Nov 4.
Once I got a weird error that I reported to Microsoft which suggested that it was due to Intel's Graphics.
I did a system restore to an earlier date, but the problem persists.
I have an Intel GMA 900 onboard graphics card on my 915GV motherboard. My TV Tuner is Hauppauge WinTV 88X.

Should I reinstall the updates or something else? Please help me.
Thanks...