@GabrielGrant

Did you try full install from the latest (10/10?) Gutsy RC (release
candidate) Live CD?

If not get it here:
http://releases.ubuntu.com/releases/gutsy/

 It just works for me now .. though after sometime it will hard lockup
if you are using compiz. This is another issue for another bug.

-- 
[gutsy] Regression - "Desktop effects could not be enabled" on ATI Mobility 
Radeon
https://bugs.launchpad.net/bugs/144077
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