This is now fixed in jaunty. For intrepid (8.10) install the xserver-xorg-video-radeon package from: https://edge.launchpad.net/~tormodvolden/+archive
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Triaged => Fix Released
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radeon video tearing
https://bugs.launchpad.net/bugs/298264
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