I recently installed the fglrx driver, and this issue seems still to exist. 
That is to say, i see the same thing the original reporter noticed:
- slow, choppy scrolling
- desktop effects (compiz) cannot be enabled

I include the output of lspci -vvnn, the rest will follow soon. I don't
know if it's relevant, but i'm using an ATI Radeon HD 2350.

** Attachment added: "output of lspci -vvnn"
   http://launchpadlibrarian.net/19485474/lspci_-vvnn_output.txt

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fglrx works, but window moving/resizing and scrolling are very, very slow; 
desktop effects don't work
https://bugs.launchpad.net/bugs/284687
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