Comment 9 for bug 599741

@Mirco Müller: I didn't use fglrx-driver because back then, because installing it would make it impossible to boot the system, while the free radeon (merged with radeonhd?!) driver did its job perfectly well on the default Ubuntu desktop with effects enabled.

With the latest updates applied, it's still possible for me to reproduce this bug. However, I might give fglrx another try and let you know about the results.