Public bug reported:

Regarding whatever package sets prefs for compositing in 9.10:

On a relatively old Dell C610 with an Ati Mobility M16 16mb graphics core...
Compositing is turned on by default in the installer and in the fresh system.
This would be welcomed if it actually worked.  Unfortunately, what happens is 
that large portions of the screen simply fail to update.  Installing or using 
the installed system is impossible in this state.

Turning off visual effects in the appearance prefs fixes the issue.

** Affects: ubuntu
     Importance: Undecided
         Status: New

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Compositing in karmic fails with Ati Mobility M6 16 MB on Dell C610 
https://bugs.launchpad.net/bugs/474264
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