Re: 180.08 & red checkerboard
You are not the only one. I have the red checker board with the 180 series drivers, but with the older 178 series drivers it was a black checkerboard (go figure).
My personal setup is using the new KDE 4.2 beta series under Kubuntu 8.10. I have two possible work-arounds that have worked for me: 1. Disabling the compositing manager has stopped the problem while watching video. 2. I've noticed that either enabling a scaling mode like the Expose' effect or maximizing the video window also helps.
I've noticed the checkerboarding with mplayer and vlc, but I've never seen it with things like Youtube videos in Flash.
I hope this helps, if you are using a desktop with compiz, try falling back to the non-compositing manager while watching video and that may help.