This bug appears to have regressed in the latest releases - specifically
Lucid in my case, but potentially Karmic as well, judging by the comment
above.
Changing the default video out away from xmga fixes the issue. I'm
assuming this default setting is no longer being applied for whatever
reason?
** Changed in: mplayer (Ubuntu)
Status: Fix Released => Confirmed
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default video output is xmga
https://bugs.launchpad.net/bugs/65165
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