@Aaron Strontsman, actually... after messing around a bit more with that
dialog I noticed that you can get a lot better experience if you set it
to XV and then enable textured video. With that config I get:

* reasonable CPU usage
* movie surface follows totem window when I move it
* dropshadow is properly rendered

I wonder why textured video is not set as the default for radeon on
Ubuntu?

-- 
compiz dropshadows around menu over video surfaces show up as solid black 
instead of gradiently more translucent
https://bugs.launchpad.net/bugs/376625
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