It looks like the new EXA acceleration caused that problem:
https://bugs.freedesktop.org/show_bug.cgi?id=8721

After adding the following entry into the Device section of the xorg.conf, 24 
bit depth and xv seems to work:
Option "AccelMethod" "EXA"

The man page says it's not really mature, but instead of the old and
'stable' acceleration this one works. :-(

-- 
[Gutsy] multiple regressions since Feisty
https://bugs.launchpad.net/bugs/136853
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