"radeon.modeset=1" needs to be added at the end of the kernel line, 1 space 
after "splash". [Well, that's how it works for me :) ]
But do note , there is regression with using KMS , the FPS will be much lower 
than without the KMS. [in my case nearly half]
So the system might *seem* a bit sluggish, well it is actually the slow 
rendering and not the cpu slowness.

For any other info > https://wiki.ubuntu.com/X or you can ask for help
in irc #ubuntu-x .

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(Needs radeon-rewrite) 3D stuff breaks with Compiz:  Redirected Direct 
Rendering is needed in DRI
https://bugs.launchpad.net/bugs/96991
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