Additional confirmation. Flickering stops if desktop effects are disabled.
Also note that when manually manipulating the "cube" desktop effect (if enabled 
and using keyboard-mouse combination to manually rotate) the desktop triangles 
(i.e. one of the two triangles used to draw the rectangular desktop background) 
will also flicker. However, its flickering is between visibility and 
invisibility, whereas video usually flickers black or white (black I think, but 
I'm not at my desktop).

Intel Core i7 920
ATI Radeon HD 4850 (512 MB dedicated)
Intrepid 64-bit

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flickering BUG - Desktop Effekte and ATI - Video bugs
https://bugs.launchpad.net/bugs/289003
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