KMS stands for kernel mode-setting, a great new tech but which required
changes in drivers.

Anyway. Could you try to install the -ati driver from
https://launchpad.net/~xorg-edgers/+archive/drivers-only ? It's recent
enough that it contains a fix that was titled "xv: fix Xv on M6/RV100
under KMS.".

It's only four lines of code so it could be considered for 10.04 LTS
update as well if it truly fixes the problem for everyone:
http://cgit.freedesktop.org/xorg/driver/xf86-video-
ati/commit/?id=426114b4a99d37b394efe3336968bb0ab9b6e9ae

-- 
xserver-xorg-video-ati 6.13.0-1ubuntu2 has disabled my working XV
https://bugs.launchpad.net/bugs/562537
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in ubuntu.

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