Okay - I reinstalled the mesa package as instructed. 
I also renamed the dri folders as requestes in #53

Compiz still does not work, however as mentioned the artifacts have disappeared.
Find attached the logs


** Attachment added: "dmesg.txt"
   http://launchpadlibrarian.net/47821069/dmesg.txt

-- 
[R350] screen corruption on 9800SE
https://bugs.launchpad.net/bugs/565883
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