I can confirm this bug (with another ATI card - see below). Forcing the
card into PCI mode using the driver option 'radeon.agpmode=-1' is the
only solution for me (even though performance suffers); I tried AGP
modes 1, 2, 4 without any results; option 'EXANoDownloadFromScreen'
didn't work for me either.

I was affected by bug #444139, so I used boot option 'radeon.modeset=1'
to turn on KMS. Since then I'm affected by this bug. The only way to get
rid of screen artifacts and font tearing (as shown by Gytis Raciukaitis)
is boot option 'radeon.agpmode=-1'.

I attach the output of dmesg without option 'radeon.agpmode=-1'

01:00.0 VGA compatible controller [0300]: ATI Technologies Inc Radeon
RV250 [Mobility FireGL 9000] [1002:4c66] (rev 01)

** Attachment added: "dmesg-rv250"
   http://launchpadlibrarian.net/33849813/dmesg-rv250

-- 
[KMS][R300] Screen artifacts on X
https://bugs.launchpad.net/bugs/413259
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xserver-xorg-driver-ati.

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