I can confirm it working for me, too. My card is: ATI Technologies Inc RS690 
[Radeon X1200 Series]  (It's the 690G onboard video, desktop version). 
It also seems faster for me too, at least in some flash games I tried.

@ Артём Попов:   Thanks for explaining that. It didn't show up as an
update, probably because I had the "newer" 3 version, so I removed the
package and reinstalled it from -proposed.

Thanks everyone for the efforts.

-- 
[intrepid] Xorg fails to start xserver-xorg-video-radeon (CD_INVALID_OPCODE)
https://bugs.launchpad.net/bugs/274234
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