I am having the same problem on my notebook (Gateway W350a) with a ATI graphic 
card (ATI Technologies Inc RS690M [Radeon X1200 Series]).
I have tried with the drivers "ati", "radeon", "radeonhd" and "fglrx", none of 
which worked properly (if worked at all).
I have a fresh Ubuntu 9.04 installation.

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X1200: flickering after update on Jaunty
https://bugs.launchpad.net/bugs/331522
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