The radeon driver plays video about the same as the fglrx. No big difference, in fact it looks exactly the same to me but I can't really test it, a common problem I presume.
Does the "ati" driver support compiz or not?
My experience is NOT, so unless someone has a configuration that works for an r500 chip card, I'll assume it's not working and that's my TEST report. Since I can't test the output with 3D enabled, I can't test it any more than that. So until we see a 3D composite video playback solution there is nothing more that I can say about this driver.
As for FGLRX:
Do I even need an overlay option in xorg.conf?
Can the driver just detect which options it and the hardware support and enable them as needed?
I've had good luck with only DRI, and the textured 2D and Xrender options enabled so unless I see a better list of options (realizing the driver is still in the works), I'll assume that's the best there is at the moment.
Thank you to all who have posted helpful replies here. I realize you all have other things to do besides chat all day with mua...