The slow performance with compiz may just be bug 320813.

** Changed in: fglrx-installer (Ubuntu Jaunty)
       Status: Confirmed => Triaged

** Description changed:

  Don't try to install it on jaunty, it won't work until the driver is
  updated to work with the new ABI.
+ 
+ The workaround is to manually purge fglrx
+ $ apt-get remove --purge fglrx*
+ and you can run the open source version with desktop effects until AMD fixes 
this bug.
+ 
+ And if that doesn't help, do try to purge ati and radeon drivers and 
reinstall ati
+ $ apt-get remove --purge xserver-xorg-video-ati
+ $ apt-get remove --purge xserver-xorg-video-radeon
+ $ apt-get install xserver-xorg-video-ati

-- 
MASTER: fglrx does not support xserver 1.6
https://bugs.launchpad.net/bugs/313027
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