I think I solved my problem.

Last weekend I did 'fresh install' of 7.10 Gutsy Gibbon. Just saved my
Home folder to an external HD then installed. Since then there has been
no problems with the graphics. Everything is how it was under 7.04
Feisty Fawn. No slow-down, no jumpy scrolling in Firefox, everything is
working as it should.

Originally I upgraded from 7.04 to 7.10 using an alternate CD.

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With desktop effects on scrolling is slow and laggy in firefox & other browsers
https://bugs.launchpad.net/bugs/110384
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