Problems with iTunes 7 and watching videos

When I try to watch a video I get a lot of colored fuzz. The audio sounds fine, there's no picture. I've tried checking out a video podcast, a video I encoded myself, and an episode of Alias I downloaded from the iTMS. My coworker is having the same problem.
I tried it on my iBook and videos worked fine.

Try this
1. Quit iTunes.
2. Go to: Start menu > Control Panels > QuickTime.
3. Click on the Advanced tab.
4. Un-check the checkbox next to "Enable Direct3D video acceleration".
5. Open iTunes.
6. Play the video.

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