I am having the same issue on Ubuntu Studio Intrepid Ibex. 
I run an older intel 478 chip and an AGP ATI HD 2400 graphics card. Any video 
playback full screen or not flickers profusely. It is like watching a crt 
television through another crt tv. I run dual side by side monitors and did the 
typical ATI install that Ibex prompted after the first boot. After that I 
entered the command "sudo aticonfig --initial". After logging out and back in I 
was golden for a 2560 x 1024 resolution across the two monitors.
Compiz works wonderfully. I know it is related to this problem; however, I 
often use compiz to help persuade others to change from windows to Ubuntu. They 
love the eye candy!

I too have attached "lspci -vvnn" and my Xorg.0.log for comparison with
Shackjack's issue.

Thanks!

** Attachment added: "lscpi -vvnn"
   http://launchpadlibrarian.net/19398589/lspci%20-vvnn

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All GL applications flicker when Compiz is being used
https://bugs.launchpad.net/bugs/228233
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