I have also the same problem...

I have an ATI Radeon X1300/X1550 Series card in a Dell OptiPlex 745

01:00.0 VGA compatible controller: ATI Technologies Inc RV516 [Radeon 
X1300/X1550 Series]
01:00.1 Display controller: ATI Technologies Inc RV516 [Radeon X1300 Pro] 
(Secondary)

Linux version 2.6.27-11-generic (bui...@vernadsky) (gcc version 4.3.2
(Ubuntu 4.3.2-1ubuntu11) ) #1 SMP Wed Apr 1 20:57:48 UTC 2009

the system works more or less in gnome but in kde it does'nt work, the mouse 
gets blured...
it confuses the dysplays DVI-0 and DVI-1 if when kde starts are both plugin... 
xrand makes it work more or less the problem is when reboots...all gets mess up 
again...

-- 
[RV516] Kubuntu: Corrupted mouse cursor after moving between screens
https://bugs.launchpad.net/bugs/360724
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