Yes windows 7 Home 32 bit, I am sure DXVA is not working on either of my machines. I can only use some codecs others will hang or just give a green screen. Flash has to be set to not use hardware acceleration or it is just sound and a green screen.
I originally had just 2 cores on my 'front end' VM and this was not up to playing 1080p but now I have assigned it 4 cores it works perfectly on all I have tried, amazingly its not even at 50% over all use so I dont know why it wont work with 2 cores but the other test machine I have is only 2 cores total and it will only play 720p's smoothly (plays 1080p fine when booted straight to windows but probably using DXVA not CPU).
HDCP is a no go and even if it did work I cannot find a peice of software that supports bluray and does not hang up or give a message when it detects its running on a VM. Kind of fair game as they license the BluRay facility and have to show they are protecting it. Virtual devices have been used in the past to overcome copy protection. A lot of early NoCD cracks for games used Virtual CD drives.
I am using the onboard HD audio and analogue out. I got problems using the Radeon audio but dont have an HDMI audio amp so didnt bother investigating further.
Also got Trixbox working perfectly now on the same machine with a hardware telephony card, I can game or watch 1080p with no problems the phone still works.