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IFAIK only mpeg2 is supported right now.

Just played the video in Unity 2D which i believe isn't using compositing at all, still no tearing...

I have "Unredirect fullscreen windows" set to false, so maybe that is the cause. I watched link you posted, still no tearing... and, I know what tearing looks like, I used to use fglrx to play videos...

Here is screenshot. It I don't see any tearing...

Hmm, I have no idea. Its ok right after instalation. But here are some things that I change after instalation:
Compiz - disable vsync
xorg.conf - ColorTiling On, PageFlipping On, ...

No problems here. I can play 1080p fullscreen videos from youtube. I have ATI 3200HD with OSS drivers running

I have ATI 3200, which I guess is much slower then Your card and i have realy smooth system interaction.Try change some compiz, maybe disable compiz V-Sync...

10 fps was with stock ubuntu 11.04 ?

Ubuntu MM,ATI 3200 HD,Kernel 2.6.37 rc7,xorg-edgers ppa - 1 FPS

All it reports is this:

Game Startup Error: Unable to set up graphics.
Reason: Missing required OpenGL extension.

The game just don't run. When I run it from console it says some extension is missing.

Works fine:

Osmos, Cortex Command, Penumbra:Overtune, Revenge of titans, Vendeta Online, Warsow, World of Goo

Doesnt work:

Braid

I forgot, you have to install libgl1-mesa-dri-experimental

1 - add xorg-edgers ppa
2 - delete /usr/lib/dri/r600_dri.so
3 - go to /usr/lib/dri/galium, create link to r600_dri.so and copy it to /usr/lib/dri/
4 - restart

I have the same problem on Ubuntu with ati 3200HD.

In maverick repositories just landed fglrx driver with xserver 1.9 support and fixed vertical synchronization !!!!

Well, I tried install kubuntu, than install ubuntu and the difference was huge in my case. Without any tweaking ubuntu was much faster than kubuntu. I dont mean opening application but moving...

Yes some people says that Qt is faster than GTK, but in reality gnome feels much more snappier than KDE just because Compiz is faster than KWin.

in terminal : "sensors" to see temperatures, "powertop" to see power consumption

I'm curious whether current pm code does something on integrated cards, like mine 3200 HD? AFAIK memory clocks are fixed, so maybe some voltage drop or anything else? Difference between foss and...