So I am having issues with Boxee on my ZOTAC ZBOX HD-ID11. This device has the Next Generation ION discrete graphics and an Intel Pinetrail CPU. I think the issue is with the Nvidia drivers and I am going to contact their tech support as well, but here is my issue:
When using Boxee and playing a ".mp4" video or a ".m4v" file they are detected as audio only files and play with a black screen and no video. If I disable the hardware acceleration the videos play fine. If I use VLC the videos play fine. I am using Boxee 0.9.21.12594 32 bit. I am not experiencing this issue with the same files on a Mac Mini running0.9.21.12594 with NVidia 8400 graphics or on my PC running 0.9.21.12594 64 bit using an ATI 4350 GPU. I also previously had win x64 installed on my ZOTAC box with Boxee x64 and did experience the fault with next gen ION.
This seems strange to me because they were encoded by me on a mac using the Turbo.264 encoder using the simple h.264 profile with stereo AAC sound. I have many similar files encoded with Handbrake and Turbo.264 but muxed into the mkv container with the same simple h.264 profile and stereo AAC. This seems like an issue to me with Nvidia DXVA drivers. I have tried NVidia Beta driver packs 259.96, 258.69, and the last WHQL pack 257.21. I have tried both the x64 and x86 variants.
As a side note for users considering this machine, although the flash performance has been improved with the new beta drivers, I cannot recommend next gen ion with flash until a few other issues are resolved. When using the 257.21 drivers and decoding flash (ESPN3, Hulu, youtube) I experienced significant frame dropping when going to 720p. When I upgraded to 259.96 drivers, although I experience no frame loss, I now have a whitish flickering at about a 5-10 FPS rate when switching to 720p. This issue does not occur when I drop flash video back to 480p. The flickering is over the whole screen and is quite annoying. It occurs in x86 or x64 environments. It occurs in IE, Firefox, or Boxee youtube app with HD enabled. h.264 playback is quite sufficient up to 1080p over a 5GHZ wi-fi network in the house with no stutter, and crystal clear video. Is this an Nvidia driver or an Adobe issue?


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Very similar situation. 
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