Same problem here too using the -ati (restricted) driver on both hardy and intrepid.  With compiz desktop effects disable video is fine, only flickers when compiz desktop effects are enabled
System:
Intel P4 3.0GHz
Radeon 9600

output of lspci -vvnn

00:00.0 Host bridge [0600]: Intel Corporation 82875P/E7210 Memory Controller Hub [8086:2578] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O- Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort- <MAbort+ >SERR- <PERR- INTx-
	Latency: 0
	Region 0: Memory at f0000000 (32-bit, prefetchable) [size=128M]
	Capabilities: <access denied>
	Kernel driver in use: agpgart-intel
	Kernel modules: i82875p_edac, intel-agp

00:01.0 PCI bridge [0604]: Intel Corporation 82875P Processor to AGP Controller [8086:2579] (rev 02)
	Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR+ FastB2B- DisINTx-
	Status: Cap- 66MHz+ UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 64
	Bus: primary=00, secondary=01, subordinate=01, sec-latency=32
	I/O behind bridge: 00009000-00009fff
	Memory behind bridge: f8000000-f9ffffff
	Prefetchable memory behind bridge: d0000000-efffffff
	Secondary status: 66MHz+ FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort+ <SERR- <PERR-
	BridgeCtl: Parity- SERR- NoISA+ VGA+ MAbort- >Reset- FastB2B-
		PriDiscTmr- SecDiscTmr- DiscTmrStat- DiscTmrSERREn-
	Kernel modules: shpchp

00:06.0 System peripheral [0880]: Intel Corporation 82875P/E7210 Processor to I/O Memory Interface [8086:257e] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O- Mem+ BusMaster- SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Region 0: Memory at fecf0000 (32-bit, non-prefetchable) [size=4K]

00:1d.0 USB Controller [0c03]: Intel Corporation 82801EB/ER (ICH5/ICH5R) USB UHCI Controller #1 [8086:24d2] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin A routed to IRQ 16
	Region 4: I/O ports at bc00 [size=32]
	Kernel driver in use: uhci_hcd
	Kernel modules: uhci-hcd

00:1d.1 USB Controller [0c03]: Intel Corporation 82801EB/ER (ICH5/ICH5R) USB UHCI Controller #2 [8086:24d4] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin B routed to IRQ 19
	Region 4: I/O ports at b000 [size=32]
	Kernel driver in use: uhci_hcd
	Kernel modules: uhci-hcd

00:1d.2 USB Controller [0c03]: Intel Corporation 82801EB/ER (ICH5/ICH5R) USB UHCI Controller #3 [8086:24d7] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin C routed to IRQ 18
	Region 4: I/O ports at b400 [size=32]
	Kernel driver in use: uhci_hcd
	Kernel modules: uhci-hcd

00:1d.3 USB Controller [0c03]: Intel Corporation 82801EB/ER (ICH5/ICH5R) USB UHCI Controller #4 [8086:24de] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin A routed to IRQ 16
	Region 4: I/O ports at b800 [size=32]
	Kernel driver in use: uhci_hcd
	Kernel modules: uhci-hcd

00:1d.7 USB Controller [0c03]: Intel Corporation 82801EB/ER (ICH5/ICH5R) USB2 EHCI Controller [8086:24dd] (rev 02) (prog-if 20)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O- Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin D routed to IRQ 23
	Region 0: Memory at fc000000 (32-bit, non-prefetchable) [size=1K]
	Capabilities: <access denied>
	Kernel driver in use: ehci_hcd
	Kernel modules: ehci-hcd

00:1e.0 PCI bridge [0604]: Intel Corporation 82801 PCI Bridge [8086:244e] (rev c2)
	Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR+ FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=fast >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Bus: primary=00, secondary=02, subordinate=02, sec-latency=32
	I/O behind bridge: 0000a000-0000afff
	Memory behind bridge: fa000000-fbffffff
	Prefetchable memory behind bridge: 88000000-880fffff
	Secondary status: 66MHz- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- <SERR- <PERR-
	BridgeCtl: Parity- SERR+ NoISA+ VGA- MAbort- >Reset- FastB2B-
		PriDiscTmr- SecDiscTmr- DiscTmrStat- DiscTmrSERREn-
	Kernel modules: shpchp

00:1f.0 ISA bridge [0601]: Intel Corporation 82801EB/ER (ICH5/ICH5R) LPC Interface Bridge [8086:24d0] (rev 02)
	Control: I/O+ Mem+ BusMaster+ SpecCycle+ MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Kernel modules: iTCO_wdt, intel-rng

00:1f.1 IDE interface [0101]: Intel Corporation 82801EB/ER (ICH5/ICH5R) IDE Controller [8086:24db] (rev 02) (prog-if 8a [Master SecP PriP])
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin A routed to IRQ 18
	Region 0: I/O ports at 01f0 [size=8]
	Region 1: I/O ports at 03f4 [size=1]
	Region 2: I/O ports at 0170 [size=8]
	Region 3: I/O ports at 0374 [size=1]
	Region 4: I/O ports at f000 [size=16]
	Region 5: Memory at 88100000 (32-bit, non-prefetchable) [size=1K]
	Kernel driver in use: ata_piix
	Kernel modules: ata_piix

00:1f.2 IDE interface [0101]: Intel Corporation 82801EB (ICH5) SATA Controller [8086:24d1] (rev 02) (prog-if 8f [Master SecP SecO PriP PriO])
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz+ UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 0
	Interrupt: pin A routed to IRQ 18
	Region 0: I/O ports at c000 [size=8]
	Region 1: I/O ports at c400 [size=4]
	Region 2: I/O ports at c800 [size=8]
	Region 3: I/O ports at cc00 [size=4]
	Region 4: I/O ports at d000 [size=16]
	Kernel driver in use: ata_piix
	Kernel modules: ata_piix

00:1f.3 SMBus [0c05]: Intel Corporation 82801EB/ER (ICH5/ICH5R) SMBus Controller [8086:24d3] (rev 02)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O+ Mem- BusMaster- SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap- 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Interrupt: pin B routed to IRQ 10
	Region 4: I/O ports at 0500 [size=32]
	Kernel modules: i2c-i801

01:00.0 VGA compatible controller [0300]: ATI Technologies Inc RV350 AR [Radeon 9600] [1002:4152]
	Subsystem: ABIT Computer Corp. Device [147b:6190]
	Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop+ ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz+ UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 255 (2000ns min), Cache Line Size: 32 bytes
	Interrupt: pin A routed to IRQ 16
	Region 0: Memory at d0000000 (32-bit, prefetchable) [size=256M]
	Region 1: I/O ports at 9000 [size=256]
	Region 2: Memory at f9000000 (32-bit, non-prefetchable) [size=64K]
	[virtual] Expansion ROM at f8000000 [disabled] [size=128K]
	Capabilities: <access denied>
	Kernel driver in use: fglrx_pci
	Kernel modules: fglrx, radeonfb

01:00.1 Display controller [0380]: ATI Technologies Inc RV350 AR [Radeon 9600] (Secondary) [1002:4172]
	Subsystem: ABIT Computer Corp. Device [147b:6191]
	Control: I/O- Mem- BusMaster- SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz+ UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Region 0: Memory at e0000000 (32-bit, prefetchable) [disabled] [size=256M]
	Region 1: Memory at f9010000 (32-bit, non-prefetchable) [disabled] [size=64K]
	Capabilities: <access denied>

02:02.0 FireWire (IEEE 1394) [0c00]: Texas Instruments TSB43AB23 IEEE-1394a-2000 Controller (PHY/Link) [104c:8024] (prog-if 10)
	Subsystem: ABIT Computer Corp. Device [147b:1022]
	Control: I/O- Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B- ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 32 (500ns min, 1000ns max), Cache Line Size: 32 bytes
	Interrupt: pin A routed to IRQ 18
	Region 0: Memory at fb02a000 (32-bit, non-prefetchable) [size=2K]
	Region 1: Memory at fb020000 (32-bit, non-prefetchable) [size=16K]
	Capabilities: <access denied>
	Kernel driver in use: ohci1394
	Kernel modules: ohci1394

02:04.0 Ethernet controller [0200]: Intel Corporation 82557/8/9/0/1 Ethernet Pro 100 [8086:1229] (rev 0c)
	Subsystem: Intel Corporation Device [8086:0040]
	Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 32 (2000ns min, 14000ns max), Cache Line Size: 32 bytes
	Interrupt: pin A routed to IRQ 20
	Region 0: Memory at fb028000 (32-bit, non-prefetchable) [size=4K]
	Region 1: I/O ports at a000 [size=64]
	Region 2: Memory at fb000000 (32-bit, non-prefetchable) [size=128K]
	[virtual] Expansion ROM at 88000000 [disabled] [size=64K]
	Capabilities: <access denied>
	Kernel driver in use: e100
	Kernel modules: eepro100, e100

02:06.0 Multimedia audio controller [0401]: Creative Labs SB Audigy [1102:0004] (rev 04)
	Subsystem: Creative Labs Device [1102:2002]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 32 (500ns min, 5000ns max)
	Interrupt: pin A routed to IRQ 22
	Region 0: I/O ports at a400 [size=64]
	Capabilities: <access denied>
	Kernel driver in use: EMU10K1_Audigy
	Kernel modules: snd-emu10k1

02:06.1 Input device controller [0980]: Creative Labs SB Audigy Game Port [1102:7003] (rev 04)
	Subsystem: Creative Labs Device [1102:0040]
	Control: I/O+ Mem- BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B+ ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 32
	Region 0: I/O ports at a800 [size=8]
	Capabilities: <access denied>
	Kernel driver in use: Emu10k1_gameport
	Kernel modules: emu10k1-gp

02:06.2 FireWire (IEEE 1394) [0c00]: Creative Labs SB Audigy FireWire Port [1102:4001] (rev 04) (prog-if 10)
	Subsystem: Creative Labs Device [1102:0010]
	Control: I/O- Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr- Stepping- SERR- FastB2B- DisINTx-
	Status: Cap+ 66MHz- UDF- FastB2B- ParErr- DEVSEL=medium >TAbort- <TAbort- <MAbort- >SERR- <PERR- INTx-
	Latency: 32 (500ns min, 1000ns max), Cache Line Size: 32 bytes
	Interrupt: pin B routed to IRQ 23
	Region 0: Memory at fb029000 (32-bit, non-prefetchable) [size=2K]
	Region 1: Memory at fb024000 (32-bit, non-prefetchable) [size=16K]
	Capabilities: <access denied>
	Kernel driver in use: ohci1394
	Kernel modules: ohci1394