I think you're running out of video memory, you've got only 32MB. You
can try setting a smaller Virtual size in your xorg.conf, the driver
defaults to 2048x1200 which is maybe more than you need.

** Changed in: xserver-xorg-video-ati (Ubuntu)
     Assignee: Tormod Volden (tormodvolden) => (unassigned)
       Status: Incomplete => Confirmed

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window title is white when window is maximized
https://bugs.launchpad.net/bugs/144103
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