sub: ArcSoft indicated to me that the ATI green screen corruption problem was resolved around the middle of this year. They indicated you needed the ATI 8.5 drivers or higher, along with a ArcSoft decoder dated newer than July. I suspect Cyberlink also has a newer revision of their decoder which will work with the changes in the ATI driver.
Your suspicion is correct, and has been for about a month. The PowerDVD updates can be downloaded from the Cyberlink website under Donwloads->Software Update->PowerDVD. I'm running Catalyst 8.10, but 8.9 was fine too. There are occasional glitches, especially on startup, but it's very watchable.
Now if only GBPVR could tune a DVB-S2 card the world would truly be a better place