I have the same problem with a Radeon RV250 (Mobility FireGL 9000).  The
work around seems to work for me, but I get the tearing.

The bug #413259 solution seems to have fixed the tearing problem.

I'll also note that the compiz performance takes a hit without the
fixes.  The animations stutter a bit, but with the fix, the animations
are smooth.

-- 
(Needs KMS) Background and full screen apps don't show up when Normal Visual 
Effects on (Radeon 7500) 
https://bugs.launchpad.net/bugs/444139
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