I have experienced the same problems as described in the first post on a lenovo Thinkpad W500 (with an ATI FireGL graphics card, incorrectly identified as a Radeon HD3650) running ubuntu 9.04.

Enabling the restricted ATI driver causes the creation and maximisation of windows to be really slow (100% cpu usage) and lead to system instability (simultaneously running firefox, glxgears and a terminal made x.org unresponsive; I needed a hard reset).

After disabling the restricted ATI driver the problems disappeared.

I have experienced this problem after upgrading from xubuntu 8.10 (which did not seem to have this problem) to xubuntu 9.04 and after a fresh (no manual changes to xorg.conf or other configuration files) install of ubuntu 9.04.

If more people with recent ATI graphics hardware are also experiencing this problem (together with system instability), it might be a good idea to increase the severity of this bug report since it seriously hampers the `desktop experience'.

lspci output:
00:00.0 Host bridge: Intel Corporation Mobile 4 Series Chipset Memory Controller Hub (rev 07)
00:01.0 PCI bridge: Intel Corporation Mobile 4 Series Chipset PCI Express Graphics Port (rev 07)
00:03.0 Communication controller: Intel Corporation Mobile 4 Series Chipset MEI Controller (rev 07)
00:03.2 IDE interface: Intel Corporation Mobile 4 Series Chipset PT IDER Controller (rev 07)
00:03.3 Serial controller: Intel Corporation Mobile 4 Series Chipset AMT SOL Redirection (rev 07)
00:19.0 Ethernet controller: Intel Corporation 82567LM Gigabit Network Connection (rev 03)
00:1a.0 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #4 (rev 03)
00:1a.1 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #5 (rev 03)
00:1a.2 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #6 (rev 03)
00:1a.7 USB Controller: Intel Corporation 82801I (ICH9 Family) USB2 EHCI Controller #2 (rev 03)
00:1b.0 Audio device: Intel Corporation 82801I (ICH9 Family) HD Audio Controller (rev 03)
00:1c.0 PCI bridge: Intel Corporation 82801I (ICH9 Family) PCI Express Port 1 (rev 03)
00:1c.1 PCI bridge: Intel Corporation 82801I (ICH9 Family) PCI Express Port 2 (rev 03)
00:1c.3 PCI bridge: Intel Corporation 82801I (ICH9 Family) PCI Express Port 4 (rev 03)
00:1c.4 PCI bridge: Intel Corporation 82801I (ICH9 Family) PCI Express Port 5 (rev 03)
00:1d.0 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #1 (rev 03)
00:1d.1 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #2 (rev 03)
00:1d.2 USB Controller: Intel Corporation 82801I (ICH9 Family) USB UHCI Controller #3 (rev 03)
00:1d.7 USB Controller: Intel Corporation 82801I (ICH9 Family) USB2 EHCI Controller #1 (rev 03)
00:1e.0 PCI bridge: Intel Corporation 82801 Mobile PCI Bridge (rev 93)
00:1f.0 ISA bridge: Intel Corporation ICH9M-E LPC Interface Controller (rev 03)
00:1f.2 SATA controller: Intel Corporation ICH9M/M-E SATA AHCI Controller (rev 03)
00:1f.3 SMBus: Intel Corporation 82801I (ICH9 Family) SMBus Controller (rev 03)
01:00.0 VGA compatible controller: ATI Technologies Inc Mobility Radeon HD 3650
03:00.0 Network controller: Intel Corporation PRO/Wireless 5100 AGN [Shiloh] Network Connection
15:00.0 CardBus bridge: Ricoh Co Ltd RL5c476 II (rev ba)
15:00.1 FireWire (IEEE 1394): Ricoh Co Ltd R5C832 IEEE 1394 Controller (rev 04)
15:00.2 SD Host controller: Ricoh Co Ltd R5C822 SD/SDIO/MMC/MS/MSPro Host Adapter (rev 21)
15:00.3 System peripheral: Ricoh Co Ltd R5C843 MMC Host Controller (rev ff)
15:00.4 System peripheral: Ricoh Co Ltd R5C592 Memory Stick Bus Host Adapter (rev 11)
15:00.5 System peripheral: Ricoh Co Ltd xD-Picture Card Controller (rev 11)