I'm testing 2.6.32-020632-generic from http://kernel.ubuntu.com/~kernel-
ppa/mainline/v2.6.32/ with RV280 [Radeon 9200 SE]

kms is not enabled by default and the desktop is still black.

enabling radeon modeset=1 option fixes the black background but
unfortunately visual effects can't be enabled. I could only enable
metacity compositing.

performances are very good, no flash video problems and the system seems
stable.

-- 
(Needs KMS) Background and full screen apps don't show up when Normal Visual 
Effects on (ATI RV100/RV200 chipset)
https://bugs.launchpad.net/bugs/444139
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