i915, Textured Video, and Compositing?

[Jeffrey K.]

http://www.intellinuxgraphics.org/documentation.html says the following:

"To better support the Composite extension, the Intel graphics driver
supports --for i915 and later-- textured video which uses the 3D
hardware to paint the video directly to the frame buffer instead of
using an overlay. This means there's no funny 'blue' image caused by
the color key, and it means you can capture video frames with normal X
tools."

I have an i915, and when using compositing with the 1.7.2 driver, I'm
still getting that funny blue image on areas of a video where, for
example, a shadow of some other window overlaps, whereas the rest of
the video looks fine.  According to Xorg.0.log, textured video *is*
being enabled correctly, but this doesn't seem like the correct
behavior.  Am I misunderstanding the Website's assessment of the
current driver's functionality, or are there extra steps that must be
taken before compositing and Xv will work as expected, or is this not
yet fully implemented in the driver?

Does this have something to do with the following bug?
https://bugs.freedesktop.org/show_bug.cgi?id=4488

Thanks,
Jeff