I thought I'd add some info to this report. I'm seeing similar issues
after doing a fresh install of 11.10 onto a Samsung NC10. This netbook
does not use an ATI card however. It uses the i915 driver so it's an
Intel integrated video card.

Not so sure this bug relates to ATI video.

My screen seems to flicker when the screen dims automatically. The
brightness controls are shown on screen and oscillate between dim and
bright causing the flickering. This will continue until I hit the super
key to bring the Unity home screen up. I'm sure I've seen a similar bug
filed against samsung-backlight but I can't find it now :-/

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https://bugs.launchpad.net/bugs/874361

Title:
  Oneiric introduces severe flickering when adjusting brightness

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