Comment 31 for bug 144077

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uga (yegor-jbanov) wrote : Re: [gutsy] Regression - "Desktop effects could not be enabled" on ATI Mobility Radeon

Figured out my problem. The only way to run effects on my system is to install xserver-xgl, which I did. I know it hasn't been declared stable yet, but it works. So the problem is in the unclear error message.

A very nice article about this can be found here: http://forlong.blogage.de/article/2007/10/2/Desktop-effects-by-default-in-Gutsy---how-Compiz-Fusion-enhances-Ubuntus-desktop-of-version-710

It is indeed a little not logical for Gutsy to recommend to install a driver "In order to use your hardware more efficiently" which then doesn't support the enhanced desktop features.