*** This bug is a duplicate of bug 129152 ***
    https://bugs.launchpad.net/bugs/129152

With the ATI restricted drivers, compiz doesn't work, so installing the
restricted ATI driver probably fixed your problem by disabling desktop
effects. With desktop effects disabled, the workspace preferences have
the option of changing the number of workspaces, as discussed in bug
#129152

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In Gutsy Tribe 5 the workspace switcher shows 2 workspaces with no option 
spinner to change number of workspaces.
https://bugs.launchpad.net/bugs/137904
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