I am facing the same problem since I installed Ubuntu 12.10. I have AMD
Radeon™ HD7550M with Intel Hybrid card.

The default driver (not fglrx) that comes with Ubuntu makes the system
so slow that it is almost impossible to use in production or even
casually for watching a bunch of videos for that matter. Install ATI
proprietary card make Unity crash, now I have an OS without Unity and
without Windows title bar and borders. Apparently entire compiz does not
load.

ATI just came out with 12.10 version of their catalyst driver so I tried
that too with same result. While doing "aticonfig" i get the "update-
alternative warning". I also noticed that my screen is not detected due
to some reason... I opened "color" that I use to apply custom icc
profile on my screen but I couldn't see it their in the list of
hardware.

I thought this might be a problem with my discrete card so I tried
configuring my system with integrated card with "aticonfig --px-igpu"
and now I got Unity and everything loaded. But the performance is very
bad and due to some reason transparency is not handled. I see black bars
where transparent panels/windows should be. I am at least able to use it
though, but if any one got a solution kindly let us know.

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https://bugs.launchpad.net/bugs/1068661

Title:
  1002:6740 Unity does not load after installing fglrx-installer Radeon
  HD 6700M Series

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