xorg.conf is no longer created by default with newer versions of the
xserver.  But you can make one - see the beginning of
https://help.ubuntu.com/community/Video and also see
https://wiki.ubuntu.com/LucidLynx/ReleaseNotes#Window%20corruption%20with%20older%20ATI%20graphics%20cards

-- 
[radeon driver] (regression) poor video decoding performance
https://bugs.launchpad.net/bugs/578224
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which is subscribed to xserver-xorg-video-ati in ubuntu.

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