It depends on what program you're using for video playback.  For fglrx
to provide decode acceleration, the program needs to support xvba or va-
api.
http://wiki.cchtml.com/index.php/Ubuntu_Precise_Installation_Guide#Hardware_Video_Decode_Acceleration_.28EXPERIMENTAL.29

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https://bugs.launchpad.net/bugs/1195973

Title:
  FGLRX Fully Installed but system still uses VESA

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