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The Windows 7 Codec Pack supports almost every compression and file type used by modern video and audio files.
The package is easy to install, while also offering advanced settings to the high end user:
For simple installation select "Easy Installation".
For advanced installation options select "Expert Installation".

Codec's Explained:
A codec is a piece of software on either a device or computer capable of encoding and/or decoding video and/or audio data from files, streams and broadcasts. The word Codec is a portmanteau of 'compressor-decompressor'

Compression types include:
x264 | h.264 | AVC | DivX | XviD | MP4 | MPEG4 | MPEG2 | AC3 | DTS and many more.

File types include:
.mkv | .avi | .flv | .mp4 | .m4v | .m4a | .ogm | .flac | .ape | .aac | .ogg | .mpc and many more.

Package Components:
? ffdshow Video Codec 20110922 x86 Revision 3984 by clsid.
? ffdshow Video Codec 20110915 x64 Revision 3982 by clsid.
? XviD 1.3.2 Video (Encoder) Codec.
? Microsoft - Windows Media 9 Video Codec 9.0.1.369.
? Flash Video Splitter 1.4.2499 x86 & x64.

? AC3Filter 1.63b x86 & x64.
? AC3File 0.7b x86 & x64.
? Spdifer 0.3b x86 & x64.

? DivX ACM Codec 4.1.
? Lame MP3 3.98.2 ACM Codec.
? DSP-worx Bass source filter 1.11.

? Haali Media Splitter 03/03/11 x86 & x64 - For MP4, MKV, OGM and AVI container files.
? Matroska Source Splitter 1.4.2499 x86 & x64.
? MP4 Source Splitter 1.4.2499 x86 & x64.
? MPEG Source Splitter 1.4.2499 x86 & x64.
? RealMedia Source Splitter 1.4.2499 x86 & x64.

? VSFilter 2.39.5 x86 & 2.37 x64 - Subtitle Readers.
? CDXA Reader 1.4.2499 - Also known as Form 2 Mode 2 CD or XCD x86 & x64.
? GSpot Codec Information Appliance 2.70a.