I think other games use different programs to integrate the cut scenes instead of windows codecs. They probably went this way because the cost was cheaper than having to use a 3rd party program.
Swapping out the file might be worth a try...
I'd bet you're having a conflict somewhere...pretty hard to narrow it down.
I was going to wait till I did a fresh install of either my XP Pro or when I decide to get win7...so I hear ya
Hopefully there will be more info forthcoming and a patch or suggested work around soon!
Good luck!
As irritating as it is I'd still say hold on to the game, at some point you should be able to run it and it IS a lot of fun