iI had the same problem, screen blanking even with screensaver set to
off.  Running gutsy, fglrx driver ati x1600pro.  i fixed it by doing
something i read in another post, which involved doing the following:

$ sudo mv /usr/bin/gnome-screensaver /usr/bin/gnome-screensaver-actual

$ sudo cat > /usr/bin/gnome-screensaver
xset -d :0 s 0
killall gnome-screensaver
gnome-screensaver --display=:0

$ sudo chmod 755 /usr/bin/gnome-screensaver

-- 
Screen blanks after ten minutes when watching video in Mplayer with XGL and 
Compiz Fusion turned on
https://bugs.launchpad.net/bugs/125947
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