PPA from comment #8 also woks for me. I have a Lenovo ThinkPad T400 and
ATI Mobility Radeon HD 3470. My question now is what happens when a
xorg-server update comes through? Do I just keep on using the one from
the PPA and hold updates back?

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[Lucid][Ubuntu 10.04][ATI cards] Slow/freeze windows management (resize, 
maximise, .etc) with fglrx driver + compositing desktop.
https://bugs.launchpad.net/bugs/568988
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