I confirm this on Hardy Beta with an Intel 965GM card running Compiz. I haven't
tried the Totem part of the bug, though (un-installed).
2.6.24-12-generic
xserver-xorg-video-intel: 2:2.2.1-1ubuntu6
vlc: 0.8.6.release.d-0ubuntu6
compiz: 1:0.7.2-0ubuntu2
** Changed in: vlc (Ubuntu)
Status: New => Confirmed
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[Gutsy] vlc shows instead of compiz shadows blue borders over xv output
https://bugs.launchpad.net/bugs/154845
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