Are you sure it is xserver-xgl that causes the crash? For a radeon 7500 card 
you'd need to use Aiglx, which is the default...
And what does the crash look like? Is is similar to the crash I am 
experiencing? see bug #99844

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Crashes under older ATI card (Radeon 7500)
https://bugs.launchpad.net/bugs/96102
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