MediaElement for normal user windows server 2008

I have very strange issue with MediaElement on Windows Server 2008 logged as not administrator. Every time I'm trying to play video I have error HRESULT: 0xC00D11B1

Here are details:

1. This video is working when I'm logged as Administrator
2. This video is working on WMP on both Admin and User Account
3. This video is NOT working in mediaelement when logged as user different than administrator even if that user is added to administrator group.
4. Even if I run application as administrator it is NOT woring.

This only happens on Windows Server 2008, everything is working on Windows Server 2008 R2

0xC00D11B1 is an error thrown by WMP indicating opening a media file has failed since WPF uses their OCX behind the scene. It could could be due to number of reasons, including opening DRM content and missing required codec. Someone in the past also expereienced this problem but it was later found out due to an error in the MediaElement.Source URI. You can take a look at http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=1695695&SiteID=1 and see if this fixes the problem or not. Also, does this happen to any other media files?

source : http://social.msdn.microsoft.com/forums/en-US/wpf/thread/2d80888f-4f1d-450c-90ee-2568b7283e23/