Install xvba-va-driver, check "Input & Codecs" -> "Use GPU accelerated decoding" in VLC preferences. Run "sudo amfconfig --set-pcs-u32=MCIL,HWUVD_H264Level51Support,1" if you need High@L5.1 video support.
I try to install it on ubuntu, the package name is:
$ apt-cache search xvba xvba-va-driver - XvBA-based backend for VA API (AMD fglrx implementation)
Because the ubuntu package was compiled with another and older Catalyst version, the catalyst version of the Ubuntu official depot.
While I installed the last version 12.6 from the file on the official AMD site.
Anyway, I decided to compile my own package. For this operation to work you have to install catalyst drivers from AMD site and choose deb package installation.
To compile xvba-va-driver Ubuntu package from source, do:
$ apt-get build-dep xvba-va-driver
$ apt-get source -b xvba-va-driver
$ dpkg -i xvba-va-driver_0.7.8-1ubuntu3_amd64.deb
to /etc/environment file.
Finally I enable GPU acceleration in VLC but I didn't see a change, VLC continues to play video at 22% of my processor (intel core 2 duo 2ghz), like before the xvba-va-driver instalaltion...but I guess it is enough for 720 HD video playing.
Run "sudo amfconfig --set-pcs-u32=MCIL,HWUVD_H264Level51Support,1" if you need High@L5.1 video support.
AMD should integrate this video driver in the aim driver installation, it's a very annoying step I'll have to reproduce at each driver update...