I experience the same 'chessboard' on a system with ATI X700 and can confirm 
that the error doesn't exist on Intrepid (from which I'm reporting right now). 
Any fixes? 


** Attachment added: "lspci"
   http://launchpadlibrarian.net/28209297/lspci.txt

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[X700] chessboard design on Desktop with 9.04
https://bugs.launchpad.net/bugs/383754
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