I see the performance problem in normal GUI as well as video playback on a 
fresh install of Lucid with card Radeon 7000. Turning off KMS makes the 
performance issue go away.
Let me know what other details you need.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Fix Released => Confirmed

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[RS100] desktop became slow after upgrading to Lucid
https://bugs.launchpad.net/bugs/544496
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