I agree. If you are looking for that spot-on answer, there hasn't been one that fits it everytime. Start with...
http://www.experts-exchange.com/Applications/Q_20803628.html
Hello,
This is the first time I played a DVD on my Gateway laptop, but WinDVD kept giving me the "create overlay failed - lower your resolution or color depth". I checked, and 800x400 is as low as it can go. I googled for some more answers, and it says to "turn off your extended desktop" but I am not using the laptop as an extended desktop (no multiple monitors either) so what else can I do to fix this?
I am using Windows XP Professional. I have a S3 Graphics Savage IX video card.
Thanks in advance!

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic