I also have EXACTLY the same problem with a ATI mobility radeon X300
card on a Dell Inspiron 9300 laptop.

Using Gutsy with all updates

compiz : 1:0.5.1+git20070725-0ubuntu1
xorg : 1:7.2-3ubuntu4

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random system freeze when desktop-effects activated
https://bugs.launchpad.net/bugs/115283
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