They are hardware accelerated and work like charm with the Direct Connection option turned on. And no "Incompatible codec and renderer combination" error messages! Note that like all hardware accelerated codecs, the video codec requires the Enhanced Video Renderer to be used (the Enhanced Video Renderer must definitely be made the default video renderer).
And these codec are FREE, they come included in Windows 7! It looks like the codec struggle is totally over.
I use the Microsoft DTV-DVD Video Decoder as my Video Codec and H.264 Codec, and the Microsoft DTV-DVD Audio Decoder as my Audio Codec and AAC Codec. For AC3 I use RatDVD.

As far as I can see, these superior codecs are not yet present in the codecs.ini file of DVB Dream 1.5 beta 7. The following lines need to be added (don't forget to find proper places for those blocks in the ini file and change the codec ordinal numbers as needed):
Code: Select all
[VIDEO-MPEG-CODEC35]
NAME=Microsoft DTV-DVD Video
CLSID={212690FB-83E5-4526-8FD7-74478B7939CD}
[VIDEO-H264-CODEC20]
NAME=Microsoft DTV-DVD Video
CLSID={212690FB-83E5-4526-8FD7-74478B7939CD}
[AUDIO-MPEG-CODEC33]
NAME=Microsoft DTV-DVD Audio
CLSID={E1F1A0B8-BEEE-490D-BA7C-066C40B5E2B9}
[AUDIO-AAC-CODEC13]
NAME=Microsoft DTV-DVD Audio
CLSID={E1F1A0B8-BEEE-490D-BA7C-066C40B5E2B9}
By the way, it looks like DVB Dream has a peculiar bug that dramatically narrows the choice of AC3 codecs. Although the Microsoft DTV-DVD Audio Decoder can decode AC3 only with Microsoft's own applications (due to licensing restrictions), there are a lot of other AC3 decoders (Cyberlink, etc) that work fine everywhere except DVB Dream. Until that bug is fixed, the RatDVD codec can be used.