I have a Intel GM965/GL960, 32bit, no Compiz and get exactly the same
error (e.g. when a tooltip from the window manager or another window
overlays the video).

When using mplayer like this 'mplayer -vo x11' to avoid 'xv' there is no
problem.

** Attachment added: "lspci.txt"
   http://launchpadlibrarian.net/25793365/lspci.txt

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When watching video, any window over video causes corrupt display and logout
https://bugs.launchpad.net/bugs/353397
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