Thanks for testing. This means the code really does not work on many (all?) devices. Let's just hope it is my bug and can be fixed. It seems unlikely that someone inside Nokia bothered to write the tearsync code for N770 (which is completely different than code for n800) but the hardware in fact does not support it. Still it never made into official N770 kernel so maybe they found it later, who knows.
# Write your default config options here! vo=nokia770:tearsync=1
# Write your default config options here! vo=nokia770:tearsync=1,yuv420=1