No problem with the bug reporting; glad I can help in some small way. 
As far as logging into 3D, that's a no go. On this machine, Ubuntu defaults to 
2D period (on 11.04 I had the "classic" interface — a classic interface that 
let me play videos, I may add ;) ). Anyway, joking aside, GNOME 3 also won't 
work/won't install. 
So what I've done on top of this set up is:

sudo apt-get install lubuntu-desktop

And wouldn’t you know it, watching videos in Lubuntu just works, all video 
formats, all players. 
So then I logged back into Unity 2D. As far as the compositing_manager key, 
first I had to install gconf-editor from the repos. Then, in Unity 2D, 
compositing_manager key was set to “False.” I switched it to “true,” logged 
out, and logged back in again. Watching a video in VLC doesn’t go into 
“slow-motion” mode, but it drops frames like mad and the video is pretty much 
unwatchable. Banshee and Gnome Mplayer, however, are still in slow-motion — 
clear, no frames dropped, but playing at a fraction of the speed it should. 
So then I went and toggled the manager back to “false” and now the videos now 
play glitch free and without a problem in Unity 2D — in all the media players. 
I should also add that I didn’t log out and back in after toggling back to 
“false”; it was more of a what-the-heck try it and see moment.

So what I'm doing right now is waiting for the updates to finish
installing on a second test machine (same laptop, but with 512 megs of
ram instead of a gig) and I will toggle compositing_manager key without
installing another UI (Lubuntu) to see what happens. I will post the
results when this is done.

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https://bugs.launchpad.net/bugs/852554

Title:
  Unity 2D Video Lags Everywhere

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