as a point of reference, using DVPlayer on OS4, I can play PAL-DVDs in a PAL dimensioned window at full speed, albeit with a fairly heavy CPU load. my setup is:
AmigaOne XE, G3/800MHz, Radeon 7000 24 bit screenmode. this is using the IDE port on the mainboard. the OS version is the last public release by Hyperion (unless they lied, and theres been another since the last one ;-) )
I think one would really struggle to play that on even the most tricked-up A1200, let alone a 68k only job.