Why don't you you just watch your photo's with acdsee pro 2.5? I could as easily watch my pics in a slideshow or with manual shifting on my monitor or on my tele, in highest quality, absolutely no need for HD or Bluray.
Next to that, powerdvd ain't all that, I use it a lot because they have a very straightforward option for SPDIF sound only. VLC is a better player though, it installs all kinds of codecs you might be needing and it's an awesome player as well. The only thing is that when you'd want to use SPDIF only (which is the only way to go if you want the sound not to be messed with and just transmitted as pure DTS or D EX or whatever comes with the movie) you have to put the audio output on Win32 wave out, that's the only way spdif would work with VLC.
http://www.videolan.org/vlc/download-windows.html