*** This bug is a duplicate of bug 201330 ***
https://bugs.launchpad.net/bugs/201330
Hmmm. Not so sure if it's a correct duplicate. Just to put my 2 cents
in, I had the same exact problem, and solved it thanks to this post:
http://www.rebelzero.com/hardware/ubuntu-810-atiamd-fglrx-driver-
updated/30#comment-83
simply ticking off the key /apps/metacity/general/compositing_manager
with gconf-editor let my ati card (using fglrx) enable visual effects
again.
--
Regression - "Desktop effects could not be enabled" on ATI Mobility Radeon
https://bugs.launchpad.net/bugs/262476
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