Same problem.

Ubuntu 9.04 x86
fglrx: 8.6

3D working good, but I can't enable compiz effect via Preferences -> Appearance 
-> Visual Effect
I got: "Desktop effects could not be enabled"

$ glxinfo | grep direct
direct rendering: Yes
$

-- 
not all user can enable compiz effects
https://bugs.launchpad.net/bugs/163529
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