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I just use WMP as the player. It's a familiar interface and I'm far too lazy to use anything else. I'll use Winamp or Foobar for FLAC encoded content.
I just throw on Xvid codec, AC3Filter and CoreAVC for x264 content. That combination plays almost everything out there.
As for codec packs, I usually don't use them since the above covers almost everything that's out there. However, if I'm building a system for someone, then I'll usually just throw on CCCP. They're good for newbie type users who just "want it to work" without having to do too much work. I personally prefer having some control over what gets loaded and try to avoid any "excess" that isn't required.
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