Still broken for me, too. Here's my log.
** Attachment added: "Fresh Xorg.2.log of a guest session"
http://launchpadlibrarian.net/37523633/Xorg.2.log
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Fix Released => Confirmed
** Changed in: xserver-xorg-video-ati (Ubuntu)
Assignee: (unassigned) => Bryce Harrington (bryceharrington)
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[X1400] Extra X sessions very slow because of EXA and no DRI
https://bugs.launchpad.net/bugs/361060
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