When vdpau is used it causes Xorg to freeze with nvidia-drivers. The new version of the drivers supposedly fixes this problem and claims that it is a result of DRI not being installed. The new driver will work regardless of if DRI is installed or not however it may be a good idea to enable the dri use flag by default in the vdpau ebuild as most nvidia users probably want to use it. Reproducible: Always Steps to Reproduce: Using flash usually causes it to happen. Actual Results: Xorg freezes, everything else works but the mouse and keyboard also stop working. Also DRI does not install by default Expected Results: It shouldn't do that and DRI should install by default. We should make NVidia's 304.51 stable soon.
I made a mistake with this bug. Turns out it's not DRI in vdpau, well I don't think it is, I'd like to try it with the old drivers and the dri use flag enabled in libvdpau. nvidia-drivers 304.51 does solve the problem it seems however I'd like to see exactly what nvidia means by "dri2 support in xorg" perhaps they mean in vdpau. I will try a few things and get back to you.
DRI2 support means that they're using the DRI2 module to advertise the backend which libvdpau.so reads to open libvdpau_${driver}.so