If you are using 8.04 the method is to do one of the below:

 - Disable Visual effects via 'System -> Appearance -> Visual Effects'
 - Remove compiz packages completely
 - Disable 'Xv' via 'System -> Multimedia Systems Selector -> Video' and change 
the 'Default Output' to 'X Window
   System (No Xv)'

On newer versions of Ubuntu this issue should be fixed.

-- 
Ubuntu Hardy X freezes while playing content in totem or vlc
https://bugs.launchpad.net/bugs/233896
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