When using mplayer, vlc, kmplayer in 7.10 Gusty Gibbon with ATI card fglrx, xv overlay, the video appears "Shaky"

Not sure what causes this but:

Play any video using mplayer, vlc ( even others, kaffeine too but kaffeine isn't loading lately see here: https://bugs.launchpad.net/ubuntu/+source/kaffeine/+bug/131935 )

and the video appears to be "shaky"... it won't stay still, litterally as if there is an earthquake on the screen. When you go full screen it appears to be in software mode? (video looks bad)

I'm using ATI X1600 mobile, fglrx driver, haven't had any problems in Feisty.

Some output:

ryan@ryan-laptop:~$ fglrxinfo
display: :0.0 screen: 0
OpenGL vendor string: ATI Technologies Inc.
OpenGL renderer string: ATI Mobility Radeon X1600
OpenGL version string: 2.0.6473 (8.37.6)

ryan@ryan-laptop:~$ xvinfo
X-Video Extension version 2.2
screen #0
  Adaptor #0: "ATI Radeon AVIVO Video"
    number of ports: 4
    port base: 115
    operations supported: PutImage
    supported visuals:
      depth 24, visualID 0x23
      depth 24, visualID 0x24
      depth 24, visualID 0x25
      depth 24, visualID 0x26
      depth 24, visualID 0x27
      depth 24, visualID 0x28
      depth 24, visualID 0x29
      depth 24, visualID 0x2a
      depth 24, visualID 0x2b
      depth 24, visualID 0x2c
      depth 24, visualID 0x2d
      depth 24, visualID 0x2e
      depth 24, visualID 0x2f
      depth 24, visualID 0x30
      depth 24, visualID 0x31
      depth 24, visualID 0x32
      depth 24, visualID 0x33
      depth 24, visualID 0x34
      depth 24, visualID 0x35
      depth 24, visualID 0x36
      depth 24, visualID 0x37
      depth 24, visualID 0x38
      depth 24, visualID 0x39
      depth 24, visualID 0x3a
      depth 24, visualID 0x3b
      depth 24, visualID 0x3c
      depth 24, visualID 0x3d
      depth 24, visualID 0x3e
      depth 24, visualID 0x3f
      depth 24, visualID 0x40
      depth 24, visualID 0x41
      depth 24, visualID 0x42
      depth 24, visualID 0x43
      depth 24, visualID 0x44
      depth 24, visualID 0x45
      depth 24, visualID 0x46
      depth 24, visualID 0x47
      depth 24, visualID 0x48
      depth 24, visualID 0x49
      depth 24, visualID 0x4a
      depth 24, visualID 0x4b
      depth 24, visualID 0x4c
      depth 24, visualID 0x4d
      depth 24, visualID 0x4e
      depth 24, visualID 0x4f
      depth 24, visualID 0x50
      depth 24, visualID 0x51
      depth 24, visualID 0x52
      depth 24, visualID 0x53
      depth 24, visualID 0x54
      depth 24, visualID 0x55
      depth 24, visualID 0x56
      depth 24, visualID 0x57
      depth 24, visualID 0x58
      depth 24, visualID 0x59
      depth 24, visualID 0x5a
      depth 24, visualID 0x5b
      depth 24, visualID 0x5c
      depth 24, visualID 0x5d
      depth 24, visualID 0x5e
      depth 24, visualID 0x5f
      depth 24, visualID 0x60
      depth 24, visualID 0x61
      depth 24, visualID 0x62
    number of attributes: 13
      "XV_SET_DEFAULTS" (range 0 to 1)
              client settable attribute
      "XV_DOUBLE_BUFFER" (range 0 to 1)
              client settable attribute
              client gettable attribute (current value is 1)
      "XV_BRIGHTNESS" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_CONTRAST" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_SATURATION" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_COLOR" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_HUE" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_RED_INTENSITY" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_GREEN_INTENSITY" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_BLUE_INTENSITY" (range -1000 to 1000)
              client settable attribute
              client gettable attribute (current value is 0)
      "XV_BLENDING_MODE" (range 0 to 1)
              client settable attribute
              client gettable attribute
      "XV_CLEAR_BUFFER" (range 0 to 1)
              client settable attribute
              client gettable attribute
      "XV_OFFSCREEN_RENDER" (range 0 to 1)
              client settable attribute
              client gettable attribute
    maximum XvImage size: 4096 x 4096
    Number of image formats: 2
      id: 0x32315659 (YV12)
        guid: 59563132-0000-0010-8000-00aa00389b71
        bits per pixel: 12
        number of planes: 3
        type: YUV (planar)
      id: 0x30323449 (I420)
        guid: 49343230-0000-0010-8000-00aa00389b71
        bits per pixel: 12
        number of planes: 3
        type: YUV (planar)