It has been a while, but I recall updating the firmware on my drive. I believe it was necessary to enable HD DVD and Blu ray. I have this drive; it definitely plays both formats just fine with Arcsoft TMT 2. Actually, while I do not currently use Cyberlink PowerDVD, if I recall it did a passable job with both formats too. Arcsoft was more predictable in my environment; less crashing.
Unfortunately, be prepared for problems with copyright restriction messages.
I know that these problems should not occur; but I'll be danged if they don't show up from time to time.
The only reliable solution is to play discs with AnyDVD running. I have previously stated that I do not like this state of affairs, but I don't think I am the only one who resorted to this methodology to avoid various HDMI errors when playing media like Blu Ray discs on the HTPC.
Where did you find the drive? I thought they had gone extinct.
I give LG credit; my drive died under warranty and they had a very good and quick replacement program.