I have the same problem as waldschrat.  IBM T42 with radeon 7500, LCD
1400x1050.  Latest gutsy as of today.  Screenshot attached.

** Attachment added: "Screenshot.png"
   http://launchpadlibrarian.net/9389170/Screenshot.png

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

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Feisty: Xubuntu + Compiz = Smaller than screen visual.
https://bugs.launchpad.net/bugs/107127
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