After searching and searching and changing the wording of the issue several times, I finally found the solution!
I'm quite frustrated with the simplicity of the fix but what can you do. As this was my first NVIDIA GPU there was guaranteed a learning curve but here is what I found: Under the NVIDIA Control Panel setting: "Display>Adjust desktop color settings" is a drop-down box titled: "Content type reported to the display:" with 3 option as follows: 1: Auto-Select 2: Desktop Programs 3: Full-screen videos. By changing from the Default (#1) to option #2, the issue was resolved. All programs, games, and videos continue to work properly after this change.
My friend and I both just recently built our own PCs and we have run into the same snag. After installing all drivers and software needed for our video cards(GTX 770 & GTX 560Ti) whenever we try to open any downloaded video files our screen resolution changes and the graphics quality becomes horrible while the video is playing but once the player is closed everything returns to normal. Is this a common occurrence or did we do something wrong?