Have you tried forcing XAA instead of EXA? EXA with 32MB VRAM sounds
painful..
Try adding this to your /etc/X11/xorg.conf
Section "Device"
Identifier "radeon"
Driver "radeon"
Option "AccelMethod" "XAA"
EndSection
--
32MB r200 DRI Slow - Fails to allocate texture
https://bugs.launchpad.net/bugs/394402
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