Have you tried updating the driver using apt-get? Also, do you mind providing me with your fglrx driver version, kernel version and Ubuntu distribution version (Dapper, Edgy, etc)?
Thanks!
** Changed in: xserver-xorg-video-ati (Ubuntu)
Assignee: (unassigned) => Rouben
Status: Unconfirmed => Needs Info
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Video corruption with Xorg radeon driver
https://launchpad.net/bugs/52111
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