The issue gets resolved when I set the AccelMethod to EXA. The only
problem is that if I try to enable Compiz, the computer completely
crashes. Compiz ran in Jaunty, but poorly.

-- 
Notification and similar dialogs are displaying corrupted after update on Karmic
https://bugs.launchpad.net/bugs/416001
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xserver-xorg-driver-ati.

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