I'm exactly the same case, with x86_32 Ubuntu/intrepid, ati x1400. 
With fgl_glxgears and glxgears, both record about 60 fps :-(
I've installed fglrx driver 8.543 in recent repository build, then tried to 
make the latest 8.561 build from AMD sites, also show the same result.
I'm using dual monitor configuration, but this is not the reason because I got 
the same result without the secondary monitor.

$ glxinfo |grep render
direct rendering: Yes
OpenGL renderer string: ATI Mobility Radeon X1400

$ fglrxinfo
display: :0.0  screen: 0
OpenGL vendor string: ATI Technologies Inc.
OpenGL renderer string: ATI Mobility Radeon X1400
OpenGL version string: 2.1.8304 Release

-- 
fglrx in mesa mode
https://bugs.launchpad.net/bugs/285366
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