I'm running IC 7 with the setup 44 update (7.0.1.114) build posted today. I also ran the registry hack.

I used DVDDecrypter in File mode and selected all files from my Harry Potter DVD. WinDVD and PowerDVD have no problems playing the ripped files.

In IC I desected the Spanish audio/subtitles and some of the short videos. The IC output was directed to disk.

I used IPtools to convert the .pdi image to iso and mounted the iso with daemon tools.

PowerDVD plays from the virtual DVD with no problems.
WinDVD crashes as soon as I select the virtual DVD. I haven't burned a DVD-R yet to see if I get a coaster.

Has anyone had this problem with WinDVD and IC? WinDVD crashes on both Win95 & Win2K.

I'll next try a different DVD to see if it's a problem unique to Harry Potter. I might also try making an IC copy without deselecting anything.

UPDATE:
Well, copying and only deselecting the non-English language/subtitles worked OK. Looks like IC7 with update is still buggy.