Can confirm this. I was also having this issue on lucid though too I'm
sure, and it also affecting scrolling. disabling KMS solves it here -
many thanks. Hopefully a new version of the driver can be rolled out on
ubunut.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: New => Confirmed

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Fading effect slow with KMS in maverick
https://bugs.launchpad.net/bugs/660999
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