Doesn't Task Manager's Performance Manager thingy report 50% utilisation if one of two cores is fully utilised?
Typical applications and typical codecs don't really know how to use multiple cores (some might, many won't). So the 60% CPU utilisation may mean that one core is fully loaded doing the decoding and the other one is doing a bit of other stuff.
IE decoding this video with Media Player Classic and associated codecs and your current settings is probably too much for the available compute power. Usually there's a slider somewhere that allows you to specify how much video decoding can be left to the GPU (ie how much hardware acceleration to use); you need to make sure the software isn't doing all the decoding.
Not much point trying a quad core unless an individual core is faster than the individual cores you're using at the moment. Faster isn't always about MHz either. IE it's worth a try but not because it's a quad core, just because it's different
I'd maybe suggest trying lower monitor resolutions and seeing what other stuff is configurable in MPC (or even in WMP) but that may not be too helpful given that this is an HD video. If you can display at the same resolution the video was recorded at, that may cut out some work for the CPU or GPU.
It's very unlikely that switching from WMP to MPC will have damaged the actual video file.
There are ways and means of downconverting your original HD source to a lower quality (perhaps less demanding) format but I'll leave those suggestions to others.