Kernel 2.6.29-02062904-generic seems to solve the problems for me too (X700 
mobility, Ubuntu 9.04).
I used to have random freezes while using 3D apps.

Thanks.

-- 
[RV250] Kubuntu: X Freezes with Radeon driver EXA/XAA Composite
https://bugs.launchpad.net/bugs/348332
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