Installed PPA from
https://edge.launchpad.net/~ubuntu-x-swat/+archive/x-updates. Here are
my results:

radeon 6.12.2:
With or without Compiz flickering is still there.

radeonhd 1.2.5:
Flickering still there but no flickering when desktop effects are disabled.

** Attachment added: "Xorg.0.log.radeon"
   http://launchpadlibrarian.net/26062560/Xorg.0.log.radeon

-- 
[X1250] screen flickers when CPU is at low frequency
https://bugs.launchpad.net/bugs/351291
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