You could test if the mesa in my PPA helps.  It has a patch that fixes a 
performance regression with radeon in Jaunty:
https://edge.launchpad.net/~bryceharrington/+archive/ppa

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Confirmed => Incomplete

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[HD3650] poor performance when using compositing window manager
https://bugs.launchpad.net/bugs/364804
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