Yeah, I was using the July 10th release of Tormod Volden's driver when I didn't 
have any resolution options.  No flicker though.
I have temporarily solved the problem by doing the full manual install of the 
radeonhd driver (https://help.ubuntu.com/community/RadeonHD), and then in the 
xorg.conf file, instead of "EXA" Acceleration, I specified "XAA".  Now I have 
almost no flicker at all and my cheese and skype video still work,... just as 
long as my desktop effects aren't enabled as well.  If desktop effects are 
enabled, then skype just will display a black screen instead of webcam feed, 
and cheese will open as soon as the camera comes on.
It never stops...

-- 
[RS690M] screen flickers when CPU is at low frequency
https://bugs.launchpad.net/bugs/351291
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which is subscribed to xserver-xorg-video-ati in ubuntu.

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