Public bug reported:

I recenty started to migrate from Lucid (10.04) to Precise (12.04). 
Unfortunately, I have noticed that the video rendering performance has 
decreased with Precise. Videos with a resolution of about 720x576 that are 
played smoothly on Lucid are either flickering or shortly hanging in-between 
while played on Precise (the standard video player tends more to flickering, in 
vlc I get hangs).
I should mention that I have a quite old graphics card, it is identified by the 
X server as
    Chipset: "ATI Radeon VE/7000 QY (AGP/PCI)" (ChipID = 0x5159)

After experimenting around quite a while I found out that I get back the
old performance if I boot with "nomodeset", so I guess there's a bug in
kernel modesetting.

BTW, the output of "uname -a" is
    Linux faramir 3.2.0-32-generic-pae #51-Ubuntu SMP Wed Sep 26 21:54:23 UTC 
2012 i686 athlon i386 GNU/Linux

** Affects: xserver-xorg-video-ati (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1075296

Title:
  nomodeset needed for radeon 7000

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