I can confirm this.
Running xine-check gives an odd error message, as well:
[ good ] found xvinfo: X-Video Extension version 2.2
[ good ] your Xv extension supports YV12 overlays (improves MPEG performance)
[ hint ] Your X server doesn't support YV12 overlays.
That means xine will have to do color space transformation and scaling
in software, which is quite CPU intensive. Maybe upgrading your
X server will help here.
If you have an ATI card, you'll find accelerated X servers on
http://www.linuxvideo.org/gatos/
press <enter> to continue...
--
xine and totem-xine crashes with the fglrx driver
https://bugs.launchpad.net/bugs/130696
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