If it freezes when switching from one window to another that's a known
bug in compiz that will be fixed in hardy-updates. Otherwise I can't
think of any change between 0.6 and 0.7.4 that would make it freeze on
start.

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X freezes in drmCommandWrite() when Compiz is enabled on ATI Radeon Mobility 
9600
https://bugs.launchpad.net/bugs/195051
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