I'm seeing this with large videos (well, I believe that the cause of the poor visual quality is that xv isn't being used). I have an ATI 7500 in a T30 using the opensource drivers. The same videos worked fine in Edgy yesterday before I upgraded to feisty. The videos I've got are, for example, AVIs @ 640x272.
Daniel Robitaille mentioned the problem on the sounder list: https://lists.ubuntu.com/archives/sounder/2007-February/009841.html -- [totem-gstreamer] Totem video output doesn't use xv https://launchpad.net/bugs/80820 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs