I'm also experiencing this issue.

00:02.1 Display controller: Intel Corporation Mobile 945GM/GMS/GME,
943/940GML Express Integrated Graphics Controller (rev 03)

All video played though vlc, mplayer, totem or gst-launch appears black
and white, while youtube videos and then like work just fine.

I checked the totem settings, and sure enough, saturation was all the
way to the left.  I made the mistake, though, of clicking "Reset to
Defaults" which has side all 4 sliders (brightness, contrast,
saturation, hue) to the midpoint, which leaves the video rather garish -
over saturated and high contrast with the color balance seriously out of
whack.

This issue first appeared coincidentally with other video problems -
video fails to follow the window in real time when dragging the window
(it only moves when the window is placed in its new location), black
outlines around windows when placed over a video window, failure to draw
the video window properly in compiz alt-tab window previews.

I also noticed that if I create a new user, none of the video issues
appeared on that account.f

-- 
Black & White Video Output (Gutsy)
https://bugs.launchpad.net/bugs/149791
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