I have the same problem on Intel GM965 X3100 running up-to-date 8.10. 
Upgrading xserver-xorg-video-intel to 2.5.1 and libdrm to 2.4.1 did not help.
However, disabling DPMS in Monitor section in xorg.conf helped, and now mplayer 
does not dim display.
So, this looks like a DPMS issue.

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mplayer brightness reduces on playback
https://bugs.launchpad.net/bugs/201544
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