Hi, I am also having this issue with the 1.0.4-1 version. I don't use xscreensaver, but the DPMS extension of Xorg blanks the screen even while playing a movie. I do not think this is relevant, but this occurs with both totem-xine and totem-gstreamer.
I have looked at the totem source code and learned in what I could understand that it simulates key events using the Xtest extension. This extension loads okay on my debian box. I have tried to monitor fake key events using an instance of xev attached to the totem window, but those do not show. Should they show anyway? Feel free to ask me for more info, I would be glad to help on this bug. Alexandre