Yes I can definitely confirm this problem also.  I upgraded to 8.1 from
8.04 and like an idiot used the proprietary ATI drivers.  lesson learnt.
Anywas I basically did what everyone else did:  find everthing to do
with Radeon and ATI ( i used synaptic then used the terminal to fully
purge the crap) and also got rid of compiz.  Then I took the extra and
possibly unnecessary step of removing the card and running with the
onboard graphics for a minute, shutting down and reinstalling the card.
Not sure if this made a diff.  ALSO, ppl make sure to turn OFF your on
board graphics in the BIOS.  It can cause issues sometimes too.

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fglrx works, but window moving/resizing and scrolling are very, very slow; 
desktop effects don't work
https://bugs.launchpad.net/bugs/284687
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