I've had the same issue with Masterbaron dream's and have written him to find out what mpeg2 file he was using since I've also loaded the Klite codec pack as well as downloaded other mpeg2 files looking for a work around. Loaded Powerdvd 12 from Stardock recommendation...didn't work.
I'm on Windows 7 Pro x64 and also have Win 8 Pro x64, but haven't tried it on there yet.
I didn't figure there would be sooo many variations for mpeg2 codec! Would be nice if Stardock had it posted for download with known dreams requiring it.