I forgot to mention, compiz works fine with 2.6.32-30.59-generic. There
appear to be no regressions with the update. So while the guest session
is still unusable for me, this update seems fine.

$ lspci|grep -i radeon
01:00.0 VGA compatible controller: ATI Technologies Inc Radeon Mobility M7 LW 
[Radeon Mobility 7500]

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https://bugs.launchpad.net/bugs/652934

Title:
  [RV515] Guest session causes screen to flicker violently and session
  is unusable

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