Unfortunately, yes, the issue is still here. After 2 minutes of H.264 video I had another stall of about 3 seconds... quite annoying
A beta NVIDIA driver that I was running a couple of months ago did not have any stalls whatsoever, but libxine has been updated several times in the meantime as well, so I am not sure what to make of that.
My system is a Core2Quad Q9450 at 3.2GHz running Debian AMD64 (testing) with KDE4.2 with compositing enabled, powered by a GTX280. The following may sound a bit incoherent, but I will post my findings for the sake of completeness anyway.
nvidia-settings reported the video card in the highest performance level (for whatever reason) before starting the video. nvidia-settings still reported this after the stall occured. Starting a second video file and running glxgears alongside the (fullscreen) video introduced some noticeable tearing. And then another stall. When I paused the video to reply to this topic, I closed glxgears and saw the performance level had dropped to the lowest level. When I hit space to resume xine, the whole video window went haywire and I had to send a SIGTERM to close it.
A second attempt showed the GPU in the lowest performance level (no clue why this had suddenly lowered). This did not change after starting the video, which did not seem to 'suffer' at all from the lower clock speeds, but I guess the GTX280 is a powerful GPU
I restarted nvidia-settings a couple of times to verify the lower peformance setting.