This, bug seems to be fixed in Karmic!. I have one ATI Radeon HD 3450 and now i 
can play GoogleEarth, 3D games and there is no video blank screens or blinking 
in Totem.
Amazing!. This bug has existed for many releases and a few years and now 
finally seems fixed!.

-- 
Videos tear and "blink" when enabling compiz [AMD Feature #7647] [EPR#257833]
https://bugs.launchpad.net/bugs/179042
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which is subscribed to fglrx-installer in ubuntu.

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