Error opening/initializing the selected video_out (-vo) device
This is the big clue. MPlayer supports many video_out modes. Obviously the default here is not working. So try the following:
In a terminal:
This will give you a list of available vo devices. As an example, this is what happens when I use the above command:
MPlayer dev-SVN-r24796-4.2.2 (C) 2000-2007 MPlayer Team
CPU: Intel(R) Core(TM)2 CPU T7600 @ 2.33GHz (Family: 6, Model: 15, Stepping: 6)
CPUflags: MMX: 1 MMX2: 1 3DNow: 0 3DNow2: 0 SSE: 1 SSE2: 1
Compiled for x86 CPU with extensions: MMX MMX2 SSE SSE2
Available video output drivers:
x11 X11 ( XImage/Shm )
xover General X11 driver for overlay capable video output drivers
gl X11 (OpenGL)
gl2 X11 (OpenGL) - multiple textures version
null Null video output
mpegpes Mpeg-PES file
yuv4mpeg yuv4mpeg output for mjpegtools
My MPlayer is custom compiled and I removed alot of the unnecessary vo modes, so you will probably see alot more modes available.
What you now need to do is find a video_out mode that works.
To do so you need to try some of the modes listed by your MPlayer, it is best to start from the top.
Again in a terminal:
mplayer -vo x11 somevideofile.avi
and so forth replacing x11 with next vo mode etc. Go through your list until you find one that works.
Once you have (hopefully) found one that works, you need to add that mode to your mplayer config file.
Let's say the video mode "gl2" works. Open up ~/.mplayer/config with an editor and add the line "vo=gl2".
After that you should be set.
Of course if none of the modes work then you may have. some other complications brought about by the VM. Unfortunately I don't have the experience here and can't help much.