HI Ari,
xorg.conf is not anymore needed since karmic (ubuntu 9.10).
You can just rename it to xorg.conf.back

Indeed xorg.conf may be needed to use proprietary ATI drivers (fglrx).

Please note that following the recipe of my previous post you are using the 
open source ATI driver (xserver-xorg-video-ati) 
instead of the proprietary one (fglrx), which apparently has problems with 
unity.

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https://bugs.launchpad.net/bugs/768275

Title:
  Compiz effects slow and laggy on Natty with ATI card

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