this bug affects me too.
ubuntu 11.10, catalyst 11.8, gnome-shell is unusable, i am staying in fallback 
gnome3 mode.
with open source video  driver gnome-shell works fine. (but i have to use the 
catalyst to have top of opengl perfomance ) 
 Radeon 5550.

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https://bugs.launchpad.net/bugs/838577

Title:
  GNOME Shell display problems with FGLRX

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