Solution:

Hardware overlay is a graphics feature used for displaying video at a high framerate. It is typically used when playing DVD movies, playing video files (MPEG, Windows* Media, AVI, QuickTime*, Real*, DivX*, etc.), or when using video capture or TV-Tuner hardware. Most commonly used hardware overlay modes and sizes are supported by Intel® graphics controllers in supported versions of Windows*.  A list of the supported hardware overlay modes is not publicly available.

Note: Since displaying video using hardware overlay uses more video memory bandwidth than is normally required, it is not supported in some of the highest resolution video modes.

This applies to:

Intel® 82810 Graphics and Memory Controller Hub (GMCH) Intel® 82815 Graphics Controller Intel® 82845G Graphics Controller Intel® 82852/82855 Graphics Controller Family Intel® 82865G Graphics and Memory Controller Hub (GMCH) Intel® 82915G/82910GL Express Chipset Family Mobile Intel® 915GM/GMS, 910GML Express Chipset Family