This is still an issue with 2.6.32-14.20-generic and the latest xorg-
edgers drivers. I maintain that this is a higher priority than 'Low'
because this bug will affect people if KMS is blacklisted for the radeon
(as mentioned in my last comment, the only known stable configuration
for the radeon 7500 is still XAA/metacity/RenderAccel off/no KMS).

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[XAA] garbled screen with compiz but no KMS on ATI Radeon Mobility 7500
https://bugs.launchpad.net/bugs/513956
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