I've been dealing with this exact same issue today. I just bought TotalMedia Theatre 3 Platinum before the $35 discount expired, but I've now found every Blu-ray I try just gives me a blank screen (kind of really dark purple or blue-ish).
I also have an ATI card, an X1950. Initially I was using Catalyst 8.9 drivers, but I updated to the last ones made for my card (9.11), and it still had the same issue. I got sound, the screencapture worked if I tried, but no video whatsoever. I tried without AnyDVD, and then even the sound stopped. It's been pretty buggy overall, though. I'm thinking about uninstalling it for now, and going back to the version of PowerDVD that came with my LG drive (one of the BD/HDDVD combos).