Looks like the upstream fix has propagated into the version we now have
in Karmic.
If you can still reproduce the problem on Karmic, either file a new bug
or reopen this one.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Triaged => Fix Released
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[X1950] Vertical bands of interference around HW cursor
https://bugs.launchpad.net/bugs/320771
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