I can also confirm this running Jaunty AMD64 with a Radeon XPress 1250.

I decided to play around with some of the drivers from X on the Edge,
and in running the latest available:

xserver-xorg-video-ati
xserver-xorg-video-radeon
1:6.12.2.99+git20090504.da58e351-0ubuntu0tormod

I have yet to see any screen flickering with or without visual effects
running the processor on the "powersave" daemon, even when trying things
such as rapidly moving a window around the screen, and maximizing a
terminal and running the command

cat /dev/urandom

-- 
[Radeon X1200/X1250/X1270/X1300 Mobility] screen flickers when CPU is at low 
frequency
https://bugs.launchpad.net/bugs/351291
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