Traced to be a hardware issue. Working fine with ati 6.6.193.
Flash does cause some heat but it is bearable (for instance starcraft2.com=65
Celsius degrees)
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: New => Invalid
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ati 6.6.193 causes overheat while watching videos
https://bugs.launchpad.net/bugs/133604
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