Marking Fix Released as this has been fixed from Natty forward.
http://www.phoronix.com/scan.php?page=article&item=amd_evergreen_3d&num=1

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

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https://bugs.launchpad.net/bugs/803064

Title:
  3D acceleration not enabled for radeon 5650 using open source ATI
  driver

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