I just acquired an ATI X1950 Pro just to track down this issue. I can confirm 
all the issues that have been reported with cards in the R300/400/500 series. 
The original issue is very obvious with this card, while it doesn't happen at 
all with my Radeon HD 4670 and the open source driver.
I spent a day trying to find a fix for this problem. My hope is, there may be a 
hack to work around what I believe is a driver bug. But the hardest part is to 
identify what the problem is in the driver. So far still no luck. In the mean 
time, I will report this as a driver bug. There may be a chance that the driver 
developer could pin point the issue and even propose a quick fix.

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https://bugs.launchpad.net/bugs/726033

Title:
  does not display icons until hovered

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