I am having the same problem:

Steps to reproduce:
1. A fresh install of Gutsy, on a PC with ATI 9600 card.
2. Installed fglrx using restricted driver manager.
3. Reboot and install of xorg-xgl
4. Set Power Management to "Never"
5. Set gnome-screensaver to "off"

Result:
After 10 minutes the screen blanks off.

Notes:
Running "xset -d :0 s 0" has the effect of screen blanking after 20 minutes.
Disabling DPMS solves the problem but also disables desired features 
(screensaver is desired...)

Final Note:
It seems to me that the issue will be solved when ATI fglrx driver 8.42 which 
supports AIGLX will enter ubuntu repos. Does anyone know how I can check when 
this will happen?

PS:
I haven't attached any logs. If they are desired please let me know.

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Screen blanks after ten minutes when watching video in Mplayer with XGL and 
Compiz Fusion turned on
https://bugs.launchpad.net/bugs/125947
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