I've went through some information from:

 http://wiki.archlinux.org/index.php/ATI
 https://bugzilla.kernel.org/show_bug.cgi?id=15626
 https://bugzilla.kernel.org/show_bug.cgi?id=14801

and kernel parameter

 pci=nomsi

does not help but kernel parameter

 radeon.modeset=0

does help. So it looks like KMS does not work well with my card.

** Bug watch added: Linux Kernel Bug Tracker #15626
   http://bugzilla.kernel.org/show_bug.cgi?id=15626

** Bug watch added: Linux Kernel Bug Tracker #14801
   http://bugzilla.kernel.org/show_bug.cgi?id=14801

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Running firefox causes problem with screen refreshing
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