Figured what was wrong:
I had an external display attached. Desktop extended to that display with 
amdcccle and XFCE / settings / Display
The video got cropped when the external display was NOT attached. Watched the 
movie on the internal LCD.

The way I switched between the modes with/without external display was
like I shutdown the laptop, plug/unplug the external display, do NOT do
any adjustments via amdcccle or XFCE / settings / Display. The DM seemed
to get the current situation with or without the external display.

Apparently there are some glitches. After running amdcccle (and doing a
noop change and saving) without the external display seem to have solved
the issue with the cropped video.

I did NO BIOS update.

The other difference I realized is that at boot:
- with the external display profile the internal LCD went black -- incl. 
backlight off,
- now with the "fixed" profile the internal LCD does not go black.

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https://bugs.launchpad.net/bugs/1546837

Title:
  fglrx, vlc video play crops picture

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