Tuning a Latitude D600 for DVD playback

I am in trouble because I have promised a 10y child in my family a laptop as Christmas
present.
It must not be too expensive. And it must have an optical drive and a good display.

I thought this D600 -which otherwise is running perfectly with a fresh updated Win XP-
would be OK.
The problem is playing videos such as DVD. I get poor results on Windows media player
11.
Should I try other software ? Would it help to upgrade to Windows 7 ?
There is 1,5 GB ram and an ATI radeon 9000 mobility card with Dells 4year-old driver.


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