Could you please attach `lspci -vvnn`? The lspci output you attached
did not list the PCI ID's of the devices.
Also please attach your Xorg.0.log[.old] from after reproducing the
problem.
As to the issue, DRI only works for virtual resolutions below a certain
threshold (this is one reason why we don't just set a high virtual
resolution by default). It varies from HW to HW, but much hardware is
limited to 2048 in either x or y direction. So please test this by
setting your Virtual option to 2048x2048, and configuring your monitors
with resolutions within that (e.g. 1024x768 / 1024x768). If my guess is
correct, composite should work fine with that configuration. Then if
you increase the resolutions beyond that, you would start seeing issues.
Perhaps what should happen in this case is the xserver should simply
refuse to start up with such a configuration, and issue an appropriate
error message.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: New => Incomplete
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ati driver corrupts second desktop with composite
https://bugs.launchpad.net/bugs/293709
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