Comment 9 for bug 201596

According to the changelog, in the latest xserver-xorg-video-intel patches were added to enable hardware overlay for i965, and textured video was disabled by default.

But the solution was to set 'Option "TexturedVideo" "false"'.

TexturedVideo is not disabled (to enable HardwareOverlay) by default. Using (the now still default texturedvideo) the bug remains.