AFAIK the "ati" driver supports Compiz on pre-5xx parts but not 5xx/6xx. For your 5xx card, fglrx would be your best bet.
You want TexturedVideo turned on, VideoOverlay off and OpenGLOverlay turned off. Try to use aticonfig since the amdpcsdb entries will over-ride the xorg.conf entries if there is a collision.



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