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Linux working better now.

Dec 28, 2010 Growlor link
I have been struggling with my video hardware for a while now (I primarily play on my laptop which has an embedded ATI x1250 "GPU".) Once ATI dropped support for this chip in their proprietary driver, I have been struggling along with slow performance even on bare minimum settings. So, I read about the enhanced ATI support in the FOSS driver with Ubunutu 10.10 and decided to upgrade a little over a week ago. BIG MISTAKE! At that point VO became nearly unplayable (lots of "blinking" in the video, even the sign-on screen where the station is rotating in the background.)
For a while I just used my dual-boot to Vista when I needed a VO fix (also could have used the old desktop I gave my son, but then I have to sit in a different spot in the house.) So I started poking around and decided to risk trying the bleeding edge drivers ( https://launchpad.net/~xorg-edgers/+archive/ppa .) I am happy to report this has resolved the problem and also has (slightly) improved performance. It is still not perfect (occasionally I see corrupted video in the chat text), but VO is now playing better that it has in a long time under Linux.
Jan 11, 2011 Lolin link
Maybe it's time to upgrade :)

You don't need a very expensive one to play VO in high detail. It's disappointing how they force you to upgrade by stopping supporting older cards. But yeah, that's how things work and they need to get their money too.
Jul 17, 2011 Growlor link
Just an update on this: Ubuntu recently pushed an update that included some much improved video performance for ATI devices. Initial testing looks good.