I've gotta say that I think vdpau is pretty fantastic. I'm watching blu-rays by using makemkv to stream to xbmc. I can also stream to mplayer but xbmc is much more user friendly. I've been unable to stream to smplayer or xine.
When watching blu-rays either in mplayer or in xbmc I see tearing near the top 15% of the screen. I have composite disabled in xorg.conf and here is what gets reported in the Xorg.0.log file:
$ grep -i composite /var/log/Xorg.0.log
(**) Extension "Composite" is disabled
(II) Initializing built-in extension COMPOSITE
I'm using nvidia-drivers-195.36.24 on Gentoo.
Vdpau is fabulous. If I could resolve this tearing problem, it would be perfect.