Sorry for being late in answering you question :
This driver is still buggy whatever "ati" or "radeon" setting I use in 
"xorg.conf" :
- without "compiz" it slows down reaction of desktop,
- with "compiz" it crashes KDE session.

Consequently I have to go back for "fglrx" driver (8.37.6) not working
with GoogleEath but working well with "compiz".

Tormod :
(1) is free driver known to work with some Atir Radeon cards (mine is (X 300 
PCI Express) ?
(2) when can we expect Catalyst new ATI drivers to be packaged for Ubuntu.
Thanks.

-- 
[Gutsy]ati or radeon driver for X300 PCIE video card
https://bugs.launchpad.net/bugs/135573
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