So I suppose it's the driver version because the problem is gone now. I used this PPA - https://launchpad.net/~ubuntu-x-swat/+archive/x-updates to update the X.Org packages and there the only update that actually matters is the radeon driver version which is 6.13.1.
Solved with: kernel - 2.6.34 final (for Lucid from the mainline Kernel PPA) xorg-server - 1.7.6-2ubuntu7.3 radeon driver version - 6.13.1 Regards, Miro -- [radeon driver] (regression) poor video decoding performance https://bugs.launchpad.net/bugs/578224 You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xserver-xorg-video-ati in ubuntu. _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp