UPDATE on Splash Lite status on this hardware/software system: The system is an ATI HD3200 chipset (Gigabyte GA-MA78GPM-DS2H with 128MB sideport memory at 1066mhz and an additional 512MB uma added in via bios setting), WinXP Pro x64 Edition (Clean install of xp64sp2 with CD), 8 GB memory (can run at...

Splash Lite 1.3 did not fix this problem.
BUT, after loading the ATI drivers version 10.3, the problem is now fixed!
I can now have my desktop set to 1920x1200 and play movies at full screen.
Mark

Lowering the desktop resolution from 1920x1200 to 1600x1200 made the error go away.
1920x1200 = DDraw error
1920x1080 = DDraw error
1600x1200 = mkv movie plays OK!

Finally found a workaround but a fix is needed to play at 1920x1200.
Mark

Splash Lite 1.2 on WinXP x64 shows DDraw error when dragging an mkv file onto the Splash window to play. This error box keeps popping up. (Failed to create overlay surface!) The system is an ATI HD3200 chipset, WinXP Pro x64 Edition, 8 GB memory, Phenom 9950BE and the August 2009 Directx installed. ...