Looks like the upstream fix has propagated into the version we now have
in Karmic.

If you can still reproduce the problem on Karmic, either file a new bug
or reopen this one.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Triaged => Fix Released

-- 
[X1950] Vertical bands of interference around HW cursor
https://bugs.launchpad.net/bugs/320771
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which is the registrant for xserver-xorg-driver-ati.

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