I've got the same problem. I'm using Gutsy (final) on a HP 6720s laptop
(intel X3100). Compiz is disabled by default and cannot be enabled
(without removing the blacklist check). My machine doesn't play videos
at all. It doesent matter whether i try using Mplayer, Totem or VLC.
Mplayer crashes when i try to open a video (Error opening/initializing
the selected video_out (-vo) device. I tried it with -vo xv, -vo x11 and
-vo gl2 ...

I neither have CacheLines nor PageFlip activated in my xorg.conf.

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totem crashes with 'BadAlloc (insufficient resources for operation)' when using 
compiz and xserver-xorg-video-intel driver
https://bugs.launchpad.net/bugs/111257
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