Comment 16 for bug 130696

I had the same issue and fixed it by installing a more recent version (8.40.4) of the fglrx driver manually as desribed here:

http://wiki.cchtml.com/index.php/Ubuntu_Gutsy_Installation_Guide#Method_2:_Install_the_8.40.4_Driver_Manually

xvinfo runs without errors and xine/kaffeine are playing back videos using xv without crashing, alas, enlarged video playback (e.g. fullscreen) doesn't look as good as it used to with the stock fglrx driver that came with Feisty (scaled picture is pixelated).

I suggest, the above mentioned version of fglrx should make it into restricted-modules as soon as possible to avoid the manual workaround.