I believe I'm having this exact same bug on a similar machine. LT3108h.
I'm not too well adjusted to linux but if you'd like me to run any
reports to see if I can help let me know. Screenshot matches similar
issues I am getting, the corruption seems more random on my side and
gets heavier the longer I leave it alone.

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[rs690m] Graphics corruption with ati x1200
https://bugs.launchpad.net/bugs/556782
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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