Yes AND No.

With latest Oneiric updates as of right now (2011/10/12 16:07 UTC) :

- "xset q" shows DPMS active with all timeouts set to zero (where they
previously were set to 600 before updates).

- Watching a movie (with the screen "fade to black" set to 30 minutes in
control panel) :

1/ Previously the screen went off (suddenly) after 10 minutes - due to
the DPMS timeout - This behaviour is now gone.

2/ But now the screen fades out to black after 30 minutes - as set per
control panel.

=> With previous Ubuntu versions, watching a movie with Totem video
player prevented/inhibited the screensaver to kick in and the screen to
go black. It's not the case anymore so the regression is still there

** Changed in: gnome-control-center (Ubuntu)
       Status: Incomplete => Confirmed

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https://bugs.launchpad.net/bugs/857168

Title:
  Screen goes black while watching video

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