Hi - unlike other screensavers, it seems that ElectricSheep on ubuntu (Jaunty) doesn't deactivate when the mouse is moved or clicked, but only on a keypress.
I really want to use it with my application, but it is a keyboardless touchscreen setup and so I wouldn't be able to get out of the screensaver.
Is this a bug I should submit or a setting I'm missing?

sounds like a bad interaction
sounds like a bad interaction between gnome-screensaver and mplayer. probably best to file it on gnome-screensaver. please post a link here if you do.
What exactly is the relationship between ES and mplayer?
Does mplayer handle the avi rendering to screen?
Most of the built in screensavers deactivate on mouse-click, and a few on mouse-move as well, but I've found that just ES does neither.
So would that make in an mplayer issue?
yes it uses mplayer to decode
yes it uses mplayer to decode and display the video. but all event handling should be done by gnome-screensaver.