I am sorry to hear you are having problems with your system but let me help you.
Based on the information you have provided, I recommend you uninstalling the current driver graphics from Device manager and install the latest one from our side. Here you have the instructions:
You can download the latest drivers at the following link:
Besides this step, I recommend installing the latest BIOs updates and drivers from your computer manufacture. Please be aware that I have tested a system with HD 2000 and I was able to load the Media Center on Full screen mode and played some videos and music without a problem.
I also would recommend searching for an update for MC or running the Windows Update.
Thanks for the answer. Per my original post, I have installed the latest Intel driver (152820), which is the link that you suggested. The BIOS is also the latest one that exists from the manufacturer. I've updated the MC and Windows Updates to everything latest. The problem still persists.
I had been running Windows 7 before and it did not have any problem at all so hardware isn't an issue.
Again, in Windows 8.1, any other programs, Silverlight, DVD player, run smoothly in full screen mode. MC also runs smoothly in windowed mode. It's only when MC is pulled into full screen mode that it stops producing video output signal. I tried playing around with the vertical frequency setting but it only crashes the system. My LG HDTV takes 60p Hz.
Thanks for the information. I have been testing different systems with MC and I have been able to replicate the issue.
At this point since you have tried installing the latest driver from our side and all other programs are working fine, it seems the issue is related to the software and not the graphics controller so I recommend you contacting the software manufacture for them to provide support on the software.