we are currently experiencing corrupted video playback under Linux, using both a custom-made VDPAU application and mplayer:
$ mplayer -vo vdpau -vc ffmpeg12vdpau clip.mpg
clip.mpg is an MPEG-2 YUV422P video stream, wrapped in a transport stream. I've just finished uploading it to firstname.lastname@example.org
Also, I've attached mplayer's output with VDPAU_TRACE=1 and VDPAU_NVIDIA_DEBUG=3 environment variables, and a nvidia-bug-report information package for my machine.
Tested so far on GeForce 8600 GTS and Quadro FX 880M, with similar results.
video plays fine with mplayer's software decoder.