You might want to try the video forums as the TX1 is a bit of a strange beast in that it doesn't seem to have made up its mind what it wants to be
Anyway: what video format are the clips in? I think its an M-Jpeg in an avi file : Sounds to me like windows media player simply has a codec problem with that: ( that is: WMP does not have the nessesary codec to decode the format for playback appropriately
VLC and
GOM are universal players which will play pretty much anything..
While installing them on your PC may put codecs usable by WMP on your system, you can simply play the clips in them directly by right clicking and using ..play with.. rather than force the clip to play via WMP
Regarding burning a disc... Nero, Roxio ect amongst others are third party Cd/DVD burning programs which give you more flexibility than Windows own built-in burning plug in ans are well worth getting