You should be able to use Quick Sync Video and Media SDK. There may be an installation of configuration issue, but I'll need some information to understand what you are seeing.
What version of Media SDK are you using?
How did you install the driver (download from intel.com and run setup.exe?)
Are you running on Windows7 32-bit or 64-bit OS.
Are you running win32 or x64 version of sample application?
Can you either send the printout of the sample app (including the command and parameters)?