With "compiz" I assume you are referring to the settings for desktop
effects.

Using fglrx, the system works fine both with and without desktop effects.
Using radeon, the desktop effects are off in the stock install, and can not be 
enabled.

Have been trying to figure out more exactly when the reboot occurs.
If booting using the "recovery mode" and logging in, then "service gdm start" 
gives no errors, but a one-liner output that says it is now started. However, 
that new gdm process ends less than a second afterwards.
If running it directly by executing "/usr/sbin/gdm-binary", then the result is 
very similar to when booting normally. In this case, the system reboots just 
after the cursor appears.
What more can be done to track down the cause of the reboot ?

-- 
karmic release candidate restarts computer when starting
https://bugs.launchpad.net/bugs/458676
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