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According to Google:
Error Message:
Create Overlay Failed
Translation:
Your video adapter has insufficient resources to play back your DVD-Video content.
Solution:
First, make sure your video adapter is doing as much work as possible. Check your hardware acceleration settings by right-clicking on the Windows Desktop and selecting Properties. Click the Settings tab and then the Advanced button. In many systems, you?ll then want to click the Performance tab, but this can vary according to your drivers. In ATI?s recent CATALYST drivers, for example, the hardware acceleration slider is found under the Troubleshoot tab. When you find the slider, make sure it is set to Full. Then click Apply and see if this fixes the problem.
Another way to ease the load on your video card is to reduce your resolution and color depth. As above, get to the Settings tab in your Display Properties. Drop your screen resolution down to 800 x 600 and your color quality to 16-bit rather than 24- or 32-bit. You may notice some color banding in your video, but at least you?ll have ascertained if your card is up to the task of DVD playback. If so, what you probably need is a video adapter with more video memory in order to operate properly at higher settings. If you?re using a video adapter that is built into your motherboard and gets its memory by ?sharing? RAM, consult your manual on how to allocate more system memory for the video subsystem.
One other thing to try is making sure that you have DirectDraw acceleration enabled. Click Start and Run and then type dxdiag. Click the Display tab and make sure that your DirectX features are all enabled. On that same screen, double-check that your monitor type is not
listed as Unknown. If it is listed as Unknown, you should reinstall your monitor driver.
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