I can confirm this is now fixed with catalyst 12.2. I just installed the
new driver and all my videos are playing fine again. I tried multilple
video formats with vlc and movie player. Using precise with amd64, ati
mobility 4200.

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which is subscribed to fglrx-installer in Ubuntu.
https://bugs.launchpad.net/bugs/921384

Title:
  [MASTER] Xorg crashes when trying to play a video with XV under
  xserver 1.11 - xs111LookupPrivate

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