Yes, but you can just use OpenGL output under fglrx if you have an okay R6xx/R7xx GPU and there is far less tearing than with XVideo under fglrx. (My HD 3850 has about 40% GPU load at 300 MHz when playing back 1080i video using OpenGL output.) It's not an ideal situation as OpenGL output in my opinion doesn't look as good as XVideo, but it should be "good enough" for those who also want to use 3D applications with their ATi GPUs.
Originally Posted by Kano
If somebody is running an HTPC or just wants to do 2D desktop work and play videos, I suggest skipping fglrx and using the Xorg radeon driver with a 2.6.30 or better kernel. XVideo with xorg-video-radeon has *excellent* video quality and is much lighter on the CPU and GPU than fglrx + OpenGL output.