There are actually several versions of the wmv codec. The older ones have pretty good support by the Free players, but the newer revisions are still being worked on.
win32codecs is actually a package of free-but-not-FREE windows codecs from Microsoft and other companies bundled up and made to work on Linux. As the name implies though, they are mostly designed to run on 32bit x86 systems. You probably don't need to download the ones from the mplayer site though. Most of the major distros have packaged versions available somewhere, usually in a some kind of non-free section or from a third-party repository.
If you don't want to use the win32codecs, or if you're running a 64bit or non-standard system and can't use them, try using vlc player (videolan) instead. In my experience it has the best wmv support of all the Free players.
BTW, the error message you're getting is a failure in opening the video driver. Try switching to other drivers in the settings until you find one that works best.
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