I have the exact same problem on Ubuntu 9.04 64bit and 9.10 alpha 3 
32bit(livecd). My gpu is an x1800xl.
The problem goes away if I use XAA.

Furthermore I tested it with packages provided by  Volden's PPA and the problem 
persists in git.
The packages I downloaded are:
1. xserver-xorg-video-ati_6.12.99+git20090710.43db263d-0ubuntu0tormod_amd64.deb
2. 
xserver-xorg-video-radeon_6.12.99+git20090710.43db263d-0ubuntu0tormod_amd64.deb

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[R520] flash corruption with exa enabled
https://bugs.launchpad.net/bugs/335460
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