I tried the fglrx driver and it works. I can play videos now in full-screen, 
which is good.
I guess I will have to get used to installing this driver, instead of running 
"stock." 
So is this issue still considered a bug? It is a result of Unity 2d now being 
default, as I never had this video trouble in classic Gnome; right out of the 
box, Unity doesn't work for everything. 
I'm interested in seeing what you all think.
Cheers!

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

Title:
  Unity 2D Video Lags Everywhere

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