I can confirm the bug no longer exists as I tested on the 10.04 release.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Expired => Fix Released
** Changed in: xserver-xorg-video-ati (Ubuntu)
Assignee: (unassigned) => tigertooth4 (tigertooth4)
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[ati M7500] Compiz broken when open apps and horizontal color stripes appear
https://bugs.launchpad.net/bugs/461198
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