Coming late to the party, and problem not telling you anything you don't already know, but...
I'm using Debian Etch, and had the same problem. If I switch back to the using the generic "ati" driver for xorg, however, DVD video plays fine. If I switch to the fglx proprietary drivers, Xine/Totem/Ogle etc all crash immediately on launch.
The workaround I'm using is two xorg.conf files, one for gaming and one for video.
Coming late to the party, and problem not telling you anything you don't already know, but...
I'm using Debian Etch, and had the same problem. If I switch back to the using the generic "ati" driver for xorg, however, DVD video plays fine. If I switch to the fglx proprietary drivers, Xine/Totem/Ogle etc all crash immediately on launch.
The workaround I'm using is two xorg.conf files, one for gaming and one for video.