Setting the condition on line 218 to always return true seems to solve the problem - I used " if(1 == 1) ". The embeded WMP player window does show up somewhat larger than in Moodle versions 1.7 and earlier, but this is not a problem.
I tested the mms:// protocol with WMP 10 and 11 and it works great, to my great relief, with both IE6 and IE7. We use Windows Media Services 9 running on a Windows Server 2003 platform to stream our .wmv files.
The impact of deprecating the mms:// protocol as indicated in Microsoft's documentation is unfortunately very misleading. Reading the documentation, one would naturally think that mms:// urls would simply stop working with WMP 11, but this is not the case. From the following Microsoft link - http://www.microsoft.com/windows/windowsmedia/licensing/netprokit.aspx - they state that "MMS protocol is not supported; however, "mms://" as a "protocol rollover URL" is still used (and highly recommended) when content providers expose their URLs."
So, they no longer support it, but they highly recommend using it - go figure. We will continue to use this protocol in our Moodle site for streaming .wmv files and I'm not concerned with any switching or "rollover" that may occur to optimize the actual protocol selected.
Thanks for your work on this issue.
Actually, the folder that was replaced to make the mms:// protocol work was moodle/mod/resource/type/file