Having the same thing here.  New to Ubuntu/Linux as of yesterday so
can't shed much light.

AMD Athlon processor I think (few years old), ATI Radeon 9200 Graphics.

Following above advice I can see that:

cat...@cathal:~$ glxinfo | grep direct
direct rendering: Yes


As soon as I fire up firefox, even on the simple google.com page "X" Server 
starts to use 100% of cpu, or at least as much as is left after firefox (which 
varies in cpu, low on simple pages higher for more complex stuff, as you'd 
expect).  Tried turning visual effects off but doesn't seem to make a 
difference.

Using Ubuntu 8.10 and Firefox 3.0.6 (latest I think).

Despite the CPU usage firefox is fairly responsive to use when the
problem is present I must say.

-- 
firefox and xgl cause 100% CPU
https://bugs.launchpad.net/bugs/145696
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