Hi there,
sorry to throw a spanner in the works but I have just updated the drivers for my Sapphire 4850X2 to the ATI 10.10 drivers, and can't replicate your problem at all. I am running 3 monitors 2 LG L194WT-SF and 1 LG L1715S.
I have tried using Windows Media Player, ITunes, Media Centre, VLC Player and all of them are playing perfectly in Windows 7 Ultimate 64 Bit.
What software are you running?
Does the problem occur when you are watching videos stored on your Hard drive or from a TV or Video Stream via the Internet?