Comment 11 for bug 359831

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Albert Damen (albrt) wrote : Re: all video players crash with BadAlloc error (no Compiz)

Your xorg.conf contains the line:
Virtual 3200 1200

Therefore DRI cannot be used:
(EE) intel(0): Cannot support DRI with frame buffer width > 2048.

In Intrepid XV could still be used with overlay video. In jaunty XV overlay needs DRI as well.

As a workaround you can use non-XV video, like you already mentioned, or reduce the virtual desktop width to maximum 2048.