Is your graphics card and monitor HDCP compliant? Looks all good.
Anyway to play BDs on your PC you need software, I use CyberLink PowerDVD Ultra. I haven't used WinDVD BD, it'll probably be the same. Unfortunatly i don't think there's any way to get Windows Media Center to play BDs (or HD DVDs), I'd like it to, I have Vista Ultimate and it's be nice if you could play BDs within WMC, but the best you can seem to do if set it up so that if you select "Play DVD" while there's a BD in the drive, it'll minimise WMC and open PowerDVD Ultra (or whatever player you have).
I'm sure with DVDs you could just install an MPEG-2 decoder such as NVidia PureVideo and that would permit any program to use it, but the decoder for Blu-ray and HD DVD seems locked to the program and WMC isn't compatable.
I'd like to be wrong, because I think it's stupid not permitting this interoperability, and I'd like to play BDs in WMC myself. If you find any way to do it, let me know.
I imagine eventually Microsoft WILL release an update which allows WMC to play HD DVDs, but not Blu-ray, though that's just me guessing.