This doesn't seem solved for me, either.

On an i945GM, in up-to-date Gutsy, if I turn on Compiz, video apps crash
by default. If I change the Gstreamer video properties to use Xv, they
don't crash, but the video quality is bad (pixelated) and unaccelerated.
This is one of the biggest reasons I've turned off Desktop Effects (but
I really want to keep it on!).

The behavior is exactly the same for me whether I'm using the i810 or
intel video driver.

-- 
[aiglx][intel][r300] Video playback is buggy under Compiz
https://bugs.launchpad.net/bugs/122979
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