I had the same problem.

To reiterate the solution:
System --> Preferences --> Sound
   Music and Movies:   Auto-Detect  (previously)
   Music and Movies:   ALSA    (New value that works)

My history with this issue:
They all had worked correctly in Edgy.
All 3 PCs with the problem had upgraded to Hardy. 
Flash videos ran correctly. 
The problem videos worked correctly with VLC.
Therefore it's gStreamer-specific

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totem slows down when viewing
https://bugs.launchpad.net/bugs/223784
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