Problems with mplayer

1. Whenever I play a movie, I get this error:

vo: X11 running at 1280x1024 with depth 24 and 32 bpp (":0.0" => local display)
It seems there is no Xvideo support for your video card available.
Run 'xvinfo' to verify its Xv support and read DOCS/en/video.html#xv!
See 'mplayer -vo help' for other (non-xv) video out drivers. Try -vo x11
Error opening/initializing the selected video_out (-vo) device.

2. xvinfo shows:

X-Video Extension version 2.2
screen #0
no adaptors present

3. Dri, 3D acceleration, drm and all are running fine.

If I change the video output to 'x11' instead of 'xv', video can be played. But the video is lagging under fullscreen. To fixed that, run 'gmplayer -vo x11 -zoom'. However, I read somewhere that if you have to use "-vo x11", it means that the hardware acceleration is not working. Quote from the gentoo forum: ## xv uses hardware accelerated video overlays. x11 is the slowest possible way to do video. ##

4. *** To get xv working I have to insert this line in xorg.conf: *** (IMPORTANT - this is the actual solution to my problem)

Option "VideoOverlay" "on"
## Also, if you have this in xorg.conf, the option should be set to "off"
Option "PseudoColorVisuals" "off"