Files needed to display video are not installed

This is an error I got on my version of Vista Media Center MCE

Symptoms

Vista and others MCE error when trying to play videos:

"files needed to display video are not installed"

Solutions

There are a lot of solutions online but these are the most common ones.

• Update Video Card Drivers (ati.com or nvidia.com, download the latest)
• Update Codecs (K-Lite codec pack should do the job)
• If you are using VNC, the mirror driver will cause this error