Adding this option under device section solved the blank window problem
for me

 Option "TexturedVideo" "on"
        Option "XaaNoOffscreenPixmaps"
        Option "UseFastTLS" "2"
        Option "RenderAccel" "true"
        BusID "PCI:1:0:0"

Still having flickers when playing videos in window mode but still
better than nothing. I have a radeon x700 card compiz enabled amd64
using xvideo output. Note using restricted drivers you have to enable
xvideo output manually using aticonfig --ovt=Xv

-- 
[fglrx] xv output not available for video playback
https://bugs.launchpad.net/bugs/197639
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