JJ,
The VA12a driver is known for having lots of bugs. I personally don't use the VA12a anymore as a result of that. I wouldn't be surprised if the driver is so unfriendly as to hog whatever resources WMC needs. However, it's also quite possible that you're using it in an untested scenario. WMC, when it starts, tries to "talk" to all video sources, which the VA12a is one of. I would try to reconfigure WMC to not use the VA12a as a video source.
If UAC is asking that you approve AHP, it's because either AHP or the drivers it talks to are not "signed" through some certificate authority. Thus, making it untrusted. I wouldn't turn off UAC, but instead, I would ask that it "trust this application" or "don't ask for this next time", or something like it. I don't have any untrusted apps in my Vista machine to tell you exactly what it says, but you can set it up to "remember" not to ask you next time.
By the way, what version of AHP are you using? From what I've noticed, X10 ties the AHP version to specific driver versions, so AHP may be the culprit in undoing what Windows Update does.
As a result, having the "latest and greatest" driver doesn't necessarily mean that it would work best with your particular configuration. For instance, I use 3.228 on an XP machine because the lastest AHP version has too many bugs for me to be able to use it. I tried installing the latest X10 drivers and they hosed my system, so I had to reinstall everything.
I don't recommend that people update drivers unless they're dealing with a particular problem that the driver specifically addresses.
Lastly, I know other people have been running AHP on Vista machines successfully. You may want to search around to see what versions they're using.