FYI, I've got SiS onboard graphics ( VGA compatible controller [0300]:
Silicon Integrated Systems [SiS] 661/741/760 PCI/AGP or 662/761Gx PCIE
VGA Display Adapter [1039:6330]   Subsystem: Acer Incorporated [ALI]
Device [1025:0083]), and I noticed that the issue is not present if I
use the "vesa" driver, although that then limits me to 800 x 600...

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[intrepid] Low color resolution on Mobility Radeon X1600 and Desktop Effects
https://bugs.launchpad.net/bugs/269479
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