As per comments, believed fixed in oneiric.  Leaving natty task, but
additional analysis is needed to identify the fix still.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Triaged => Fix Released

** Changed in: xserver-xorg-video-ati (Ubuntu Natty)
   Importance: Undecided => Low

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https://bugs.launchpad.net/bugs/752157

Title:
  [RS880] graphical corruption in launcher (Solid grey rectangles over
  icon text and window borders)

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