Actually, it appears to be happening with any H264 video playback :
(  I just tried some of my locally stored content, and I get the same
error.

Maybe I should slap in that CrystalHD card I have sitting on a
shelf :)  But any ideas in the meantime?

Your XBMC should not be using VDPAU, it does not exist on the
AppleTV. What version of XBMC are you running ?

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