The Xine patch is still experimental, and only works with the xinelib 1.1. branch

Introduction

Only the dshowserver method of xine will be supported from now on. Any other patching methods are now deprecated

Details

1) Download the code from svn:

svn checkout http://coreavc-for-linux.googlecode.com/svn/trunk/ coreavc-for-linux 
cd coreavc-for-linux

2) Install dshowserver forrlowing these instructions: DshowserverInstall

3) Install the xine patch

cd <path to xine-lib src>
patch -p1 < <path to coreavc-for-linux>/xine/dshowserver.patch
make
make install