Bluray lag with anydvd HD and xbmc

Hi XBMC community! I've been using XBMC for my HTPC for years now and I finally want to fully commit and ditch PDVD. So I've installed Anydvd HD and tried blueray play back right from XBMC. It turns out that it is really slow/laggy. Like only a few frames a second. My HTPC is a 4 core Phenom, 8 gigs ram, Corsair 60GB SSD, Windows 7 64, 1GB HD5570, and of course Frodo. I'm bit streaming audio to my Denon receiver. I've tried the software decoder and the hardware accelerated options (with the same performance). Am I overestimating my system's ability to decode and play Blurays? They play just fine through PDVD on the same system.

Thanks for any help!