Compiz rarely if ever showed video output on my machine, check my signature for the details of my machine. After consulting with the site, and the IRC I have found out how to get the thing to work. Since I doubt that I'm the only one with a gateway, I decided to post how to fix it up here since I could never find the "How to" here. In case I miss something it can be found here http://wiki.compiz-fusion.org/VideoPlayback?highlight=%28video%29
Change any video playback (Xine, VLC, etc..) from xv, to X11 ( XImage/Shm ), as in the standard X11 video output. The how to above has the step by step in it. I know mine is more shorter than a nutshell, but if you need the how to click on it above.
Before you ask any questions, I'm not an expert. I found this with the help of the people who answer their help chat in IRC. #compiz
Using Sabayon 5.4 x86 in a business environment.