@John thanks that's another confirmation of this bug.  Unity/compiz
won't work with the fbdev xorg driver (...or more correctly it is
supposed to work with llvmpipe, but there are still issues....).  If you
want to try KMS which may work with unity then you can define an
xorg.conf like I did
https://wiki.ubuntu.com/PowerPCFAQ#How_do_I_configure_an_xorg.conf_file.3F

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https://bugs.launchpad.net/bugs/1058641

Title:
  "No devices detected" radeon regression

Status in “xserver-xorg-video-ati” package in Ubuntu:
  Confirmed

Bug description:
  Testing the quantal daily/live ISOs I've noticed a regression with the
  radeon driver.  The last ISO I tested was from the 19th of Sept and
  that was fine.  Yesterdays live/desktop ISO (28/9/2012) fails to start
  the Xorg server.  It reports that no devices are detected.  Creating a
  very simple xorg.conf overcomes the problem:

  Section "Device"
  Identifier "Card0"
  Driver "radeon"
  BusID "PCI:0:16:0"
  EndSection

  I'll attach the Xorg.0.log from running with and without the above
  xorg.conf.

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