> Does the issue go away if compiz is shut off?

Yes - when I set System->Preferences->Appearance->Visual Effects to None,
a normal background appears, and I can move windows without any display
corruption.  This was tested with 8.10, since alpha 5 still isn't out.

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[RS482] garbled desktop background with 8.10 and ATI Xpress 200
https://bugs.launchpad.net/bugs/331472
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