Install Nvidia Current Updates
You want the Nvidia binary blob drivers to squeeze every bit of performance out of this Ion LE chipset so you can watch videos in 1080p on a $200 turd computer.
Disable Compositing for Nvidia Display Drivers
You want to disable compositing or the video will tear so very, very much. I’m very thankful that I found this article. This forum post says that you can just toggle a setting in Compiz Config Settings Manager, but that didn’t work for me.
Reboot or restart your display server.
Install XBMC on Ubuntu the Right Way
Now you can run XBMC by launching it with Dash or by typing
xbmc at a prompt.
Install lirc for Windows MCE USB IR receiver
This is optional. I have a Windows Media Center Edition-style USB IR receiver that I use with a Logitech Harmony remote. If you don’t do this step, the remote will move the cursor in XBMC, but that’s pretty much it.
When prompted, select Windows Media Center Remote. When prompted for an IR tranmitter, choose “none.”