I experienced the same problem (general screen corruption and system monitor) 
also with Ubuntu Karmic alpha 5 and Karmic beta (live usb) on my Thinkpad x32 
(ATI M6 LY 16MB).
Didn't notice the font corruption after disabling visual effects though.

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screen corruption and segfaults with radeon m6 ly
https://bugs.launchpad.net/bugs/421842
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