I am indeed using Karmic (9.10), I'm facing some freezing problems as well. 
especially when minimizing or maximizing a window. Sometimes I think it's the 
operating system that blocks, but it's actually the graphic card where the 
problem is. I've also tried to install proprietary drivers, but after following 
all the different steps and instructions, it doesn't even show up in the 
drivers menu. I tried Catalyst, I also tried to install a different driver that 
was made for my graphic card (downloaded from the website of ati/amd). What a 
horrific experience. 
When I rebooted my computer everything went black, I had to use the safe mode 
and needed to change something in a .conf file to mesa, in order to make it 
work again. 

In jaunty I never had any problems, I could even use advanced desktop
effects and compiz.

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RV280 Radeon 9200 pro Hardware not fully supported. 
https://bugs.launchpad.net/bugs/486367
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