Thanks for letting us know the issue is resolved in jaunty, I'll mark it
closed.

As far as getting it working on Intrepid, did you also try reinstalling
mesa?  Maybe I should also add that for the aggressive method:

  sudo apt-get install --reinstall libgl1-mesa-glx libgl1-mesa-dri


** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Incomplete => Fix Released

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[Mobility x1600] All video playback fails with open source graphics driver
https://bugs.launchpad.net/bugs/292036
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