Just recently, I've got a new graphics card - A Gigabyte GTX 460 1GB OC. It's quiet (at least as quiet as my 8800GTS-512 OC was) and quick - which is ideal - but has been totally incapable of playing blu-rays with PowerDVD. Every time I attempted playback, I would get a BSOD with a STOP 0x7E in nvlddmkm.sys. (Incidentally, that may well be the first blue screen I've had in Windows 7.)
I seem to have tracked this down to the drivers interacting badly with the software. I normally use PowerDVD 7 Ultra, because:
1. That's what I got with my blu-ray drive
2. The idea of having to use and sign up for MoovieLive brings me out in incandescent irrational rage
3. Software to play blu-ray discs costs a fortune
Anyway, it turns out that ArcSoft TotalMedia Theatre 3 Platinum works absolutely fine, but I wanted to avoid it for reason 3.
Note that PowerDVD 9 Ultra doesn't work either, and see reason 2.
Late last night I found a beta driver release here, which is not WHQL'd - so Windows complains when you install it - but is working fine for blu-ray playback so far.
...and my wallet breathes a sigh of relief.
Short version
Problem:
BSODs "STOP 0x7E in nvlddmkm.sys" when playing blu-ray in PowerDVD with Geforce GTX460 and driver 258.96.
Fix:
Use driver 259.32.
