You've got a lot of extraneous settings in your xorg.conf which may be
influencing the behavior here. Please move your xorg.conf aside and re-
test and see if you get the same behavior.
Also btw there is newer mesa available in xorg-edgers, so it would be
good if you would test that, as it's got a ton of ati fixes included.
** Changed in: mesa (Ubuntu)
Status: Confirmed => Incomplete
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[ATI][KMS][Karmic][R300] Compiz dont work with Mesa 7.6
https://bugs.launchpad.net/bugs/411451
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