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Running 1.04A and have bought and installed mpeg2 and vc1 licenses - all is working fine i standard skin - confluence - but when I switch to Aeon Nox then it will not play movies. Have tried restarting the R-pi with no success. As soon as I switch back to Confluence it works fine again.
Any ideas / tips???

Aeon Nox is way too heavy for the raspberry pi, just don't use it. Here are some skins together with their cpu usage: http://forum.xbian.org/thread-139.html?highlight=skin .

What a shame - by far the coolest skin. I will settle with the confluence skin then.

Quartz reloaded is also nice

same happen with hybrid...avtually is doesn't look sucha a cpu drainer...

Check Modded Confluence V2. It's like Confluence but with tweaks and many more options. I use it myself

Check your /boot/config.txt and try to increase the value gpu_mem:
gpu_mem=128

Reboot your Rpi after a change and try it again.