Lite-On IHES208-08 won't play Blu-ray

SmokinDenali, please post a screenshot or the saved log file of the BD Advisor results. Also, I'd suggest downloading the Nero Info Tool from the link below. Run it and see if you can get a second opinion to determine whether it's a problem with the actual drive or rather your software. My guess is that it's software related.

ftp://ftp6.nero.com/tools/InfoTool.zip
Nero InfoTool

http://www.cyberlink.com/prog/bd-support/diagnosis.do
Latest BD Advisor

If it is an issue with software, Cyberlink has a great new utility to check your current softwares compatibility with Windows 7. You can download it here:

http://www.cyberlink.com/stat/wind [...] /index.jsp

Try checking in your Device Manager to make sure that everything is installed properly. Since the drive is recognized by Windows 7, it should also recognize it's capabilities. At this point, really it could be anything. I'd wouldn't even rule out the wrong model being purchased. So, replacing the drive may not necessarily fix the problem. Please post more info and perhaps I or another forum member will catch something that you've missed.

I hope this helps.