Could you please recheck it with Gutsy Live CD? I guess the problem comes from
your xorg.conf. If it works with Live CD please generate a new one with "sudo
dpkg-reconfigure xserver-xorg".
If it doesn't work please attach the files '/var/log/Xorg.0.log' and
'/etc/X11/xorg.conf' from the Live CD.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
Status: Confirmed => Incomplete
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no videoplayer works correctly
https://bugs.launchpad.net/bugs/139845
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