--You're not running it through citrix, remote desktop or something like this, are you?
No, just running on a standard XP with sp2. The device is an embedded PC with an Atom 1.6g though.
--You need at least Windows Media Player 10 or above to be able to use MediaElement properly
I am running it on MP10. If you're monitoring Media_Error, as you should, you'll get an error if you're not running MP10 or higher. I'm not getting any errors and it is running -- Media_Opened and Media_Ended are called.
When I first posted this I didn't have the proper audio driver installed, so now that I do I hear sound, but still no video.
--I've found anything less than Media Player 11 fails to play pretty much anything.
I'm running it on MP10 with other pcs without problem.