Same issue for me.
Since I've been upgrading to Hardy, compiz desktop effects are very slow, quite 
unusable sometimes...
With glxgears, i only get 400 FPS.
(Previously with the same hardware on Feisty Fawn I had 3200 FPS!!!)
My graphic card is a GeForce 6200.
I use the 169.12 binary  driver, I tried with envy, but with no success.
I didn't modify my xorg.conf and didn't notice any weird things in my logs...

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[Hardy] Compiz Fusion very slow
https://bugs.launchpad.net/bugs/213162
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