dmf86, of course you can install and run the Feisty 6.6.3 -ati driver as
a workaround for this issue.  However, for Gutsy we wish to focus on
attaining a true fix for the issue, without needing to revert to the old
driver.  -ati 6.7.x contains a wealth of bug fixes for long standing
issues we wish to have, and even though it brings a few new issues such
as this one, upstream has been quite responsive to bug reports and we
anticipate putting in a request for doing an update with a newer -ati,
perhaps after 6.8.0 is out.

-- 
Screen displays garbage
https://bugs.launchpad.net/bugs/133192
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