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mplayer -vo xv is broken for intel 8xx cards in Frugalware-current since we enabled KMS. They are working on it, but till 2.6.32 is stable, I needed an interim solution. The problem is that now the default is -vo x11 which does not scale the movie at all when I enable fullscreen. So -vo gl works fine, and making this default is easy: just add 'vo=gl' to ~/.mplayer/config.