See if you can exchange the disc.
Well, I exchanged it once already. Do you think I got two bad disks in a row?
I was thinking about it more last night and is there any possibility there is an incompatibilty between the software I am using and the disk (ie its not decoding the AACS protection properly or something)? The first Dreamworks shot shows up fine, but as soon as it gets to the menu I start having the display problems.
Yeah, that was my guess pretty much from the point where you said the second disc had the same problem. Of course it's possible
that there's something wonky about this entire run of discs, but we'd likely have already heard more about that. More likely, HP/cyberlink has a problem (I haven't been paying close attention, but the HD formats are designed to "evolve" their DRM somewhat to defeat new hacks, which adds a whole new wrinkle to the question of compatibility and "standards" when it comes to discs and players).
If you can stand going back to best buy, you can try out the disc on one of their demo standalone HD players -- if it plays fine there (and I'm betting it will) then you can tell HP support to stop telling you to exchange discs and look into getting you a fix for their software, or giving you an alternative player executable.