Linux Can't set rendering method to VDPAU

I just installed a NVIDIA GeForce 8400GS video card in my ubuntu machine running 12.04. I have installed the nvidia drivers and it seems as if I have installed libvdpau. But I do not have the option in selecting that as a render method. The only options I have are Auto detect, Software, Advanced shaders (GLSL), and Basic shaders (ARB). I do have the option Allow hardware acceleration (VDPAU) checked. I currently use the Advanced shaders option. 1080p video isn't as smooth as it should be. I'm not sure what to do


Here is my xbmc.log: http://pastebin.com/bVYpZVYy

This screenshot shows that all 4 cores of my CPU are being utilized quite a bit, and it also looks like the video CPU isn't being utilized fully: http://img840.imageshack.us/img840/1926/...t001ht.png

EDIT: I have installed XBMC by adding the repository ppa:team-xbmc/ppa and running sudo apt-get install xbmc, if that helps

VDPAU is definitely working there.
The reason you can't select VDPAU as render method is because of the way it works, it's always rendered in the same way independent of the render method.

Oh, ok. That makes sense, but shouldn't the GPU be utilized fully (vcpu be at 100%)? Looks like my video card isn't powerful enough to support full 1080p in that case I guess.

vcpu means how much cpu the video player thread is using, it has nothing to do with the gpu.