I have Radeon Mobility 9000, running at 1400x1050 resolution and haven't 
noticed much problems. With some web pages, the rendering was quite slow, and I 
found out that those situations were fixed by this option in the driver section 
of xorg.conf:
Option          "XAANoOffscreenPixmaps"

Otherwise I've quite near stock configuration, though my Ubuntu has been
updated from 6.06 to 6.10 to 7.04.

-- 
Very poor 2D performance with "radeon" XOrg driver
https://bugs.launchpad.net/bugs/110403
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