version 1.2.3 was released a few days ago http://gitweb.freedesktop.org/?p=xorg/driver/xf86-video-radeonhd;a=commit;h=57aca005c1ede5495f326a98c411d049115cb845
it seems to fix a lot of reported bugs and also offers support for Xv. Xv support is the only reason a lot of ati card users (including myself) are still using the proprietary driver. For this to work, the driver would have to be compiled with Direct Rendering (DRI) enabled. 1.2.3 also supports more (mostly newer) radeon cards than 1.2.1.
for the aforementioned reasons i think packaging version 1.2.3 and pushing it to experimental would be a good idea and i would be more than happy to try it out and report back.
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