"ActiveX" inverse overlay on XviD playback

[Yukichigai]

I ripped and encoded my copy of Battle Royale with XviD, 'bout 1018kb/s with 160kb/s mp3 sound. Number one the sound is choppy but I figure that could probably be fixed by simply changing the bitrate. The other problem, however, is far mor serious. When I play it back all I get is an overlay with only a cutout that says "ActiveX" with the movie showing behind it. I'm wondering if this is an encoding problem or just a playback problem. I've attached a file that shows what I get. Please help.

[Archer]

I think this is playback problem. Do you have another operating system or computer instead to try on them. If the problem persists again then It is encoding problem.
The playback problem can appear e.g. if you have installed multiple codecs or codecpacks.