I too am having issues with xine (and other multimedia applications.) See included code tags below.
Perhaps you could try running xine-check in your terminal to see if any issues could be found. For me it found nothing, but you may have more luck.
mark:$ xine
xine: error while loading shared libraries: libavutil.so.50: cannot open shared object file: No such file or directory
vector:/~/slackpacks/LO/RPM
mark:$
So, for me, xine does not work. I ran xine-check, but that didn't give me anything helpful (see below).
mark:$ xine-check
Please be patient, this script may take a while to run...
[ good ] you're using Linux, doing specific tests
[ good ] looks like you have a /proc filesystem mounted.
[ hint ] ummm, you're running a strange kernel version.
Your kernel says, it's version 3.0.8, but I don't know
anything about this version. That probably means
You should either upgrade your kernel or upgrade this script.
press <enter> to continue...
[ good ] intel compatible processor, checking MTRR support
[ good ] you have MTRR support and there are some ranges set.
[ good ] found the player at /usr/bin/xine
[ good ] /usr/bin/xine is in your PATH
[ good ] plugin directory /usr/lib/xine/plugins/2.1 exists.
[ good ] found unknown plugin: xineplug_flac.so
[ good ] found unknown plugin: xineplug_sputext.so
[ good ] found unknown plugin: xineplug_vdr.so
[ good ] found unknown plugin: xineplug_xiph.so
[ good ] found input plugins
[ good ] found demux plugins
[ good ] found decoder plugins
[ good ] found video_out plugins
[ good ] found audio_out plugins
[ good ] skin directory /usr/share/xine/skins exists.
[ good ] found logo in /usr/share/xine/skins
[ good ] I even found some skins.
[ good ] /dev/cdrom points to /dev/sr0
[ good ] /dev/dvd points to /dev/sr0
[ hint ] Your DVD drive seems not to be attached via ATAPI.
This might be due to the use of an ide-scsi emulation.
If you really have a SCSI DVD drive, your SCSI controller is likely
to do perfect DMA, so there's no reason to worry about this.
However, if you're using ide-scsi, there is a chance that DMA is
disabled for the DVD drive. Moreover, I don't know how to enable
DMA in that case, so you probably have to live with some performance
loss. (FIXME: check for /proc/ide, provide solution)
press <enter> to continue...
[ good ] found xvinfo: X-Video Extension version 2.2
[ good ] your Xv extension supports YV12 overlays (improves MPEG performance)
[ good ] your Xv extension supports YUY2 overlays
[ good ] Xv ports: YUY2 YV12 UYVY I420 YUY2 YV12 UYVY I420