I'm having the same issues as well on a 1280x800 screen. For me,
switching the video out ("vo") to x11 rather than xv lets the videos
play, though I would much rather like to use xv.
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totem crashes with 'BadAlloc (insufficient resources for operation)' when using
compiz and xserver-xorg-video-intel driver
https://bugs.launchpad.net/bugs/111257
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