Hi Bryce, thanks for your comments.

I have upgraded and am using Oneiric now.

The issues with the unity overlay's transparency have been resolved,
however there are still lines at the top of the screen when the desktop
is focused. When an app is running full screen, there are no issues.

I'm not sure how to proceed with this. Should I file a new bug under
Oneiric or just change this one?

Just as an FYI, I recently tested out GNOME3 on the same hardware and
that looks great, except all the UI fonts are scrambled. This leads me
to believe that it's not a Unity bug, but an ati one.

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/801356

Title:
  Lines appear at the top of the desktop, and at the bottom of some
  windows

To manage notifications about this bug go to:
https://bugs.launchpad.net/unity/+bug/801356/+subscriptions

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