Confirmed here as well. AMD64 with HD3600 (vendor: 1002 device: 9596).

Visual effects were enabled at normal after fresh install with fglrx
installed via "restricted drivers" GUI. Rebooted just in case, visual
effects still running. Slow window restore/maximize/unmaximize.

>From Appearances GUI I disabled visual effects and could not re-enable.
It gives a generic error "Desktop effects could not be enabled."

If I run compiz from terminal window, it works. Still have slow window
restore/maximize/unmaximize.

It does give this warning when ran from command line: 
/usr/bin/compiz.real (video) - Warn: No 8 bit GLX pixmap format, disabling YV12 
image format


** Attachment added: "LSPCI output"
   http://launchpadlibrarian.net/26018762/Xorg.0.log

-- 
[ubuntu 9.04 beta]slow unminimizing with ati card and desktop effects enabled
https://bugs.launchpad.net/bugs/351186
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