Marking this as fixed in Lucid, as we've got KMS enabled by default and
that fixes the initially reported bug. We should follow up your display
artefacts and the lack of Xv overlay on separate bugs.
** Changed in: xserver-xorg-video-ati (Ubuntu Lucid)
Status: Triaged => Fix Released
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[RV100/RV200] (Needs KMS) Background and full screen apps don't show up when
Normal Visual Effects on
https://bugs.launchpad.net/bugs/444139
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