The ati driver is installed by default, and on ubuntu 7.10 it supports
all the features you mentioned. If you have issues with 7.10, feel free
to reopen, but for now I'll close the bug.

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

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It is impossible to install ATI drivers, and to activate desktop effects in 
7,04 on my iMac Core Duo
https://bugs.launchpad.net/bugs/103806
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