Guess I am the only one who did not install the drive, but tried the software
Yes, it comes with PowerDVD, version 3.0. Even my drive was made in Dec. 2001, they did not put in latest 4.0

However, with a 5M patch from cyberlink, our 3.0 works on XP too. (you do not have to search, after you install that 3.0, it will bring you to the web, and you can download the update there).
It (3.0) has all functions I need. The only problem I noticed is if you play DVD using MS Media Player, it won't pass the digital audio through S/PDIF. My WinDVS seems to be able to do that.