I guess it is the best to report it upstream but could you please check if it
still happens with this unofficial package
http://people.ubuntu.com/~bryce/Testing/intel/hardy-i386/xserver-xorg-
video-intel_2.3.1-1ubuntu1~bwh3_i386.deb (AMD64
http://people.ubuntu.com/~bryce/Testing/intel/hardy-amd64/xserver-xorg-video-intel_2.3.1-1ubuntu1~bwh3_amd64.deb)
of a newer -intel driver.
To install it you have to remove the old i810 driver before.
sudo apt-get remove xserver-xorg-video-i810 xserver-xorg-video-all
And please regenerate your xorg.conf just to be sure.
sudo dpkg-reconfigure xserver-xorg
If you want to reset everything do the follow commands.
sudo apt-get remove xserver-xorg-video-intel
sudo apt-get install xserver-xorg-video-all
If it still happens with the newer driver attach a current
/var/log/Xorg.0.log after playing a video file.
** Also affects: xserver-xorg-video-intel
Importance: Undecided
Status: New
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video playback is distorted with -intel driver (i945)
https://bugs.launchpad.net/bugs/147081
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