Application icons don't display on 64bit Ubuntu 11.04 and ATI graphics card

[NikTheGeek]

Binary package hint: unity

Click on Applications: all 6 icons show up and the text "Show 76 more"

Click on "Show 76 more" and no icons show up until you hover the mouse over them and the pc slows down to a crawl. Scrolling down the applications list is slow and jerky. Any other open application (like Firefox) stops responding to input for around 2 minutes, even after closing down the applications window. Then the pc starts responding again.

Screenshot available if I can upload it with this.

ProblemType: Bug
DistroRelease: Ubuntu 11.04
Package: unity 3.8.6-0ubuntu1
ProcVersionSignature: Ubuntu 2.6.38-8.42-generic 2.6.38.2
Uname: Linux 2.6.38-8-generic x86_64
Architecture: amd64
CompizPlugins: [core,bailer,detection,composite,opengl,decor,mousepoll,vpswitch,regex,animation,snap,expo,move,compiztoolbox,place,grid,imgpng,gnomecompat,wall,ezoom,workarounds,staticswitcher,resize,fade,unitymtgrabhandles,scale,session,unityshell]
CompositorRunning: compiz
DRM.card0.VGA.1:
 status: connected
 enabled: enabled
 dpms: On
 modes: 1280x1024 1280x1024 1280x1024 1152x864 1024x768 1024x768 1024x768 832x624 800x600 800x600 800x600 800x600 640x480 640x480 640x480 640x480 720x400
 edid-base64: AP///////wAOmBRAAAAAABEQAQMAJh546P1WpVNKnSQUT1S/74CBgAEBAQEBAQEBAQEBAQEBvDQAmFEAKkAwcBMAeC0RAAAeAAAA/ABYOTYyQQogICAgICAgAAAA/QA4Sx5SDgAKICAgICAgAAAA/wBMQzk2MTcwMDAzMQogAMQ=
Date: Wed Apr 13 19:08:57 2011
DistUpgraded: Fresh install
DistroCodename: natty
DistroVariant: ubuntu
GraphicsCard:
 ATI Technologies Inc RV505 [Radeon X1550 64-bit] [1002:7147] (prog-if 00 [VGA controller])
   Subsystem: PC Partner Limited Device [174b:0920]
   Subsystem: PC Partner Limited Device [174b:0921]
InstallationMedia: Ubuntu 11.04 "Natty Narwhal" - Beta amd64 (20110330)
InstallationMedia_: Ubuntu 11.04 "Natty Narwhal" - Beta amd64 (20110330)
InstallationMedia__: Ubuntu 11.04 "Natty Narwhal" - Beta amd64 (20110330)
Lsusb:
 Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 002 Device 002: ID 1267:0103 Logic3 / SpectraVideo plc G-720 Keyboard
 Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
 Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
MachineType: NEC Computers International POWERMATE VL350
ProcEnviron:
 LANGUAGE=en_GB:en
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.38-8-generic root=UUID=50b14246-c507-4d5f-a31f-21fe13d89721 ro quiet splash vt.handoff=7
ProcVersionSignature_: Ubuntu 2.6.38-8.42-generic 2.6.38.2
ProcVersionSignature__: Ubuntu 2.6.38-8.42-generic 2.6.38.2
Renderer: Unknown
SourcePackage: unity
UpgradeStatus: No upgrade log present (probably fresh install)
dmi.bios.date: 07/08/2005
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: 080012
dmi.board.asset.tag: To Be Filled By O.E.M.
dmi.board.name: MS-7168
dmi.board.vendor: NEC COMPUTERS INTERNATIONAL
dmi.board.version: 1.0
dmi.chassis.asset.tag: To Be Filled By O.E.M.
dmi.chassis.type: 3
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvr080012:bd07/08/2005:svnNECComputersInternational:pnPOWERMATEVL350:pvrPOWERMATE-VL350:rvnNECCOMPUTERSINTERNATIONAL:rnMS-7168:rvr1.0:cvn:ct3:cvr!:
dmi.product.name: POWERMATE VL350
dmi.product.version: POWERMATE-VL350
dmi.sys.vendor: NEC Computers International
version.compiz: compiz 1:0.9.4+bzr20110411-0ubuntu1
version.ia32-libs: ia32-libs 20090808ubuntu12
version.libdrm2: libdrm2 2.4.23-1ubuntu6
version.libgl1-mesa-dri: libgl1-mesa-dri 7.10.2-0ubuntu1
version.libgl1-mesa-dri-experimental: libgl1-mesa-dri-experimental N/A
version.libgl1-mesa-glx: libgl1-mesa-glx 7.10.2-0ubuntu1
version.xserver-xorg: xserver-xorg 1:7.6+4ubuntu3
version.xserver-xorg-video-ati: xserver-xorg-video-ati 1:6.14.0-0ubuntu4
version.xserver-xorg-video-intel: xserver-xorg-video-intel 2:2.14.0-4ubuntu7
version.xserver-xorg-video-nouveau: xserver-xorg-video-nouveau 1:0.0.16+git20110107+b795ca6e-0ubuntu7