Reinstalled windows, k-lite, still fuzzy avi playback, help please?

I had a HD crash, replaced it with a fresh one with a fresh install of windows xp. upgraded xp all the way up to sp3. I installed the latest k-lite standard (4.10). Didn't work. Tried the full version didnt work. I attempted to save an image of the fuzzy screen I was getting in media player classic for you to see but it cant be done in the default "overlay mixer" output, and when put in another form, the picture came out perfectly clear but when I press play it goes straight back to fuzzy again. I've also tried VLC player, and WMP 11 and they all give me the same fuzzy result during playback. I've never had a problem with k-lite over many years of use so I'm guessing this is another issue but I can't figure it out. If anybody has some ideas please help.

I went into the device manager and tried to update the video drivers but was told they were up to date by windows. i have a very basic 32mb video card since i do no gaming.

I turned off the machine and checked my video card. It is fully seated in the pci slot and the only cable connected to it is the monitor cable and that is securely screwed in.

Another note: I was able to play one avi that was, according to gspot, codec: xvid, name: xvid iso mpeg-4.

I was unable to play a different avi that was codec: xvid, name: xvid 1.1.2 final

and one that was codec: div3, name: divx 3 low-motion. For all of these g
spot said the codecs WERE installed.

Strangely as well, I was able to play an avi, codec: fmp4, name: ffmpeg.ffdshow is, but gspot says this codec is NOT installed.

I am getting more and more confused by this.

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