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.
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.