The problem here is not the shared memory.
It's most likely the sorry-ass video chipset used in the Celery. It most likely has no DVD hardware assist whatsoever, meaning the CPU has to do all the work related to decoding and displaying the movie. Normally, all modern videocards feature some form of hardware decoding assistance, so the CPU load is minimized. Memory itself only needs to be fast enough to display 30 frames per second, but even 20 frames per second would do. There is very little data that needs to be moved from main memory to the videocard - nothing compared to games. It is the video chipset that is too slow, so the CPU has to do all the work, and even that celery 700 is having a hard time doing it.
** You can buy a hardware DVD decoder that goes into a PCMCIA slot - probably much cheaper than the shipping + restocking fee on the Celery 🙂
P.S. Never buy anything with shared memory 🙂