When I try to use a video playlist (even just play all) on my MD xine dies when it tries to change track. If you change the track manually it works fine. Video playlists work fine on the core. Audio playlists work fine on both. This is happening on 1004, I tried it on a 810 beta 2 install and it happens there also.
It looks like it might be a locking issue based on these messages from the xine-player.log
Deadlock problem. 37 Going to reload and quit <0xafdffb70>
Terminating Xine_Player: watchdog detected hard deadlock, seems soft reload failed
Logs taken from track change.