Upon further testing, it appears that Banshee does work in Xv with and without compiz. When the video first starts playing, I see the first frame or two flicker on the screen, then nothing. I can get the video to playback just fine after this if I simply move the Banshee window at least one pixel. From then on, that video will play fine. I need to move the Banshee window for each video that starts playing.