VLC is easy to use, but the interface is not very nice. SMPlayer (GUI for mplayer) is good too, remembers the playback position on every video, and is based off a open-source all-in-one player (like VLC). Zoom Player is the best IMO if you're willing to pay for it, it will download the essential codecs for you and it has many options to set up everything. I recommend using Haali Video Renderer in lieu of the standard Windows VMR. Another option is to use a codec pack. Some people like K-Lite Codec Pack but i prefer the Combined Community Codec Pack. They both come with media player classic and BSplayer. Its OK to use both an all-in-one media player like VLC or mplayer and a codec pack, however, dont install two different codec packs and if you switch codec packs, use a cleaner before installing the new one.
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