I am running Slackware Current with the 126.96.36.199 kernel from /extra. My system is up to date with the latest Changelog entry (Tue Aug 29 06:24:26 CDT 2006).
I have an Intel 82852/855GM Integrated Graphics Device, I am using the i810 driver from xorg.
When I use the "xv" driver in xine I get a blue screen, and when I try to play a video the screen remains blue. I am able to use the "opengl" driver in xine without problems, but "xv" is standard in a lot of video programs (for example gxine and noatun).
The "xv" driver was working great on Slackware 10.2..
You can have a look at my xorg.conf here: http://www.8ung.at/slack/xorg.conf
Here is a screenshot of xine with the blue screen: http://www.8ung.at/slack/xine.jpg