I can also confirm this. I'm using an ATI Radeon Mobility X700. 
I think this problem could be related to this: 
https://bugs.launchpad.net/ubuntu/+source/gnome-settings-daemon/+bug/199960
although this doesn't have a solution other than uninstalling xserver-xgl, it 
might provide some extra background. People are reporting that this lets them 
run Compiz as well as fixing the error, but mine will not run Compiz, and it 
looks like thats the case with other people on this bug.

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Gnome fails to load settings with xserver-xgl installed
https://bugs.launchpad.net/bugs/198046
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