Thanks Alf! Using your PPA and it works.
I'm on a Thinkpad W500 with ATI Mobility Radeon HD 3650.

I notice my xorg process uses a lot of memory, more than 165MB. Is this
normal?

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[Lucid][Ubuntu 10.04][ATI cards] Slow/freeze windows management (resize, 
maximise, .etc) with fglrx driver + compositing desktop.
https://bugs.launchpad.net/bugs/568988
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