Thanks for the suggestion, Bryce.  I turned KMS off and 3d performance
was restored.  Unfortunately this machine generally has multiple user
sessions logged in and with KMS off I encounter this bug when I switch
to another user:

https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
ati/+bug/473098

Getting around that bug was one of the reasons I updated to begin with.
At this point I am stuck with a choice of having multiple user sessions
or working 3D.  Since other people need to use the computer, but 3d is
not mandatory, I'm going to keep KMS on for now.  If anyone can post a
link to a relevant upstream issue that would be great.  Also if there is
any more system information I can provide, let me know.

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