Direct rendering does not work when running Xgl, but it does on Xorg. Why are OpenGL applications not accelerated?
Do not intermix hardware acceleration and direct rendering. OpenGL applications will be hardware accelerated on Xgl if the driver supports pBuffers or FBOs, like the nvidia and fglrx drivers do. Direct rendering on the other hand is impossible to implement at the moment, the necessary extensions for implementing that feature are not even specified yet, let alone being implemented. Direct rendering implies hardware acceleration, but not the other way round. Direct rendering is a bit faster than indirect rendering, but indirect rendering is not as bad as it sounds.