Punting from compiz -> xorg (this is a video driver issue with AIGLX).

felipelavinz:
Thank you for your bug report.

This happens because the default xv acceleration is no longer available
when using AIGLX (because everything is being drawn through textures on
the 3D unit). I haven't seen this problem on NVIDIA cards using the more
recent binary drivers (they seem to still have an accelerated xv) but
the open source ATI drivers have a similar problem (very buggy xv when
using AIGLX) as do the Intel drivers. However my understanding is that
the latest development Intel drivers can support xv that renders using
textured video rather than an overlay
(http://intellinuxgraphics.org/documentation.html ). I vaguely remember
hearing that most video playing software does not actually give you the
option of switching between xv interfaces and thus always defaults to
the overlay xv...

This bug needs to be narrowed down to a single graphics card driver to
stand a chance of being resolved. This is also an issue if desktop
effects are going to be enabled by default in Gutsy.

** Changed in: xorg (Ubuntu)
Sourcepackagename: compiz => xorg

-- 
Video playback gets buggy when Compiz is on
https://bugs.launchpad.net/bugs/122979
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