I've just upgraded the kernel to 4.4.0-34-lowlatency by installing the 
linux-image-lowlatency-lts-xenial package.
Video acceleration works just fine combined with the 
xserver-xorg-video-radeon-lts-vivid (DRI2).

Problems begin when using xserver-xorg-video-radeon-lts-wily or xserver-
xorg-video-radeon-lts-xenial.

Tearing ensues, regardless of the presence of a xorg.conf config file to
enable/disable options to improve framerate. Enabling DRI3 only worsens
the performance regression, and accentuates tearing.

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg-lts-transitional in Ubuntu.
https://bugs.launchpad.net/bugs/1610591

Title:
  Video acceleration regression for Radeon Xpress 200M (r300) in xorg-
  lts-xenial & xorg-lts-wily

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