"Windows Media Player cannot access the file. The file might be in use; you might not have access to the computer where the file is stored, or your proxy settings might not be correct."
(or this screenshot below)
I got the above while trying to play an AVI file. No software install has been done in over a week, so this troubled me a bit. No recent changes to the system either. (Yeah, I'm one of those who believe in the saying: If it ain't broken, don't fix it.)
I have checked the permissions all the way to the root folder of the drive but it doesn't really help. I googled a bit, but came out empty.
Paranoia took over, so I scanned for viruses -- none. That didn't help either.
Luckily, I plugged in the Zalman 5.1ch headphones and was about to change the speaker settings from normal stereo to 5.1ch when the solution came. Try this:
(if using "Category" view try..)
Start --> Control Panel --> Hardware and Sound --> Sound
(if using "Icon" view try..)
Start --> Control Panel --> Sound
A pop-up will show stating certain enhancements are interfering with the program. Terminate? (Unfortunately, I wasn't able to take a screenshot as I wasn't aware that this WAS the solution to the problem. And, it is as tragic that I cannot duplicate the problem. So for now, the cause is unknown.) Click "Yes" to this pop-up.
I didn't realize this was the solution until I actually clicked on the AVI file again and it played this time. The procedure above brought back functionality of WMP. I hope it does the same for you.