Update:
since I have a new monitor I attach the new Xorg.0.log, crashes remain. (The 
xorg.conf didn't change after installing the new monitor, everything was 
automatically recognized without any problems, great work btw.)

But according to the testing script from here
http://forlong.blogage.de/article/pages/Compiz-Check
Compiz should work fine, this is of course confusing.

#chmod +x compiz-check
#./compiz-check
Gathering information about your system...

 Distribution:          Ubuntu 8.04
 Desktop environment:   GNOME
 Graphics chip:         ATI Technologies Inc RV370 5B60 [Radeon X300 (PCIE)]
 Driver in use:         radeon
 Rendering method:      AIGLX

Checking if it's possible to run Compiz on your system...

 Checking for texture_from_pixmap...               [ OK ]
 Checking for non power of two support...          [ OK ]
 Checking for composite extension...               [ OK ]
 Checking for FBConfig...                          [ OK ]
 Checking for hardware/setup problems...           [ OK ]

** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/15127535/Xorg.0.log_compiz

-- 
x-server crash with compiz using ati X300
https://bugs.launchpad.net/bugs/227936
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