Can be solved by editing xorg.conf file. Please add accelmethod exa in device 
section.
Like this:
Section "Device"
        Option "AccelMethod" "EXA"
EndSection

Looks like it is same issue here
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
ati/+bug/416001

-- 
gnome-system-monitor shows blur window in Karmic.
https://bugs.launchpad.net/bugs/474134
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