Is there some system requirement that I'm missing?
The error logs mentioned that I do not have an Iron Lake chipset so it will skip Media SDK install.
So this basically says that only Core i series are supported?
Like Nina said, the Intel Media SDK has platform specific libraries for the G45, but these libraries are not installed by the graphics driver. For that chipset, you need to use the hardware DLL (libmfxhw32.dll, or libmfxhw64.dll) from the Media SDK 1.5 Gold download package.