I confirm this. It makes GNOME feel slow in general, and is very
noticeable in some particular cases - for example, open Nautilus, grab
its lower right corner, and try resizing the window for several seconds.
It's extremely slow to repaint. Switching back to XAA makes it very fast
again.

My configuration is similar to that of the OP:
  Ubuntu Intrepid, fully updated as of 2008-09-13
  ATI Mobility Radeon 9700 (X300)
  Radeon driver 1:6.9.0+git20080826.a3cc1d7a-2ubuntu2

I haven't messed with the default xorg.conf, other than switching EXA
on. Glxgears is accelerated, and direct rendering is on.

Note that using the same driver on Hardy (taken from Tormod Volden's
PPA), I didn't have this problem with EXA. Also, I'm not using Compiz.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: New => Confirmed

-- 
Xorg eats CPU when using EXA
https://bugs.launchpad.net/bugs/269388
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