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That was what I was going to suggest as well.
In fact, I decided when I upgraded to Win7 a couple of months ago to use VLC full time instead of Windows Media Player (there is an option to choose what formats it plays by default, and you choose all of them except maybe Quicktime) and I'm very happy with it. The default skin is very very plain, but you can get lots of skins, even some that look just like Windows Media Player 11.