The garbling suggests it's a driver problem. Re-assigning. (also, looks like we have the info we need, and I'll take te screenshot as confirmation :) )
** Changed in: xorg (Ubuntu)
Sourcepackagename: xorg => xorg-driver-fglrx
Status: Needs Info => Confirmed
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Garbled using open source Radeon driver
https://launchpad.net/malone/bugs/38198
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