no clue why the compiz check, blacklists the card
but the test can be disabled easily
http://wiki.compiz-fusion.org/Hardware/Blacklist
mine is at /etc/xdg/compiz/compiz-manager
add the line and it starts
use the System-->Preferences-->Appearance, Visual Effects
System-->Preferences-->Desktop Effects is considered obsolete
If upgraded from 7.04 to 7.10 Desktop Effects might not have been removed

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[gutsy release] Desktop Effects Can't be enabled
https://bugs.launchpad.net/bugs/154261
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