Fairly sure this is a known issue upstream, but I don't see any other
existing bug report open about 3D performance on -ati.

Meanwhile, as a workaround you can try disabiling KMS (see
http://wiki.ubuntu.com/X/KernelModeSetting for guidance on this) which I
think should restore your performance to karmic levels.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Confirmed => Triaged

** Changed in: xserver-xorg-video-ati (Ubuntu)
   Importance: Undecided => High

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Radeon X1300 AGP: 3D performance much slower after upgrade to Lucid
https://bugs.launchpad.net/bugs/553784
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