This is now fixed for my Radeon X800 under Ubuntu 8.04 development version.
Using EXA without any additional parameters results in a smooth, fast desktop
without lags or other problems.
Please reopen if it still doesn't work for you under the current devlopment
version (which has xserver 1.4.1, ati driver 6.7.196 etc.)
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Confirmed => Fix Released
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[r300] ati driver unusably slow if using EXA
https://bugs.launchpad.net/bugs/90604
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