For me direct rendering has not worked since the Edgy Eft was officially released. There seem to be a number of bug reports about this. For me the problem is the drm module does not load:
[EMAIL PROTECTED]:~$ sudo modprobe -v drm Password: insmod /lib/modules/2.6.17-10-386/kernel/drivers/char/drm/drm.ko FATAL: Error inserting drm (/lib/modules/2.6.17-10-386/kernel/drivers/char/drm/drm.ko): Cannot allocate memory >From lspci: 01:00.0 VGA compatible controller: ATI Technologies Inc M22 [Radeon Mobility M300] -- direct rendering does not work https://launchpad.net/bugs/66297 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs