Following ceg's link to Phoronix, I can confirm that setting Option
"EXANoDownloadFromScreen" "true" in Section "Device" of xorg.conf fixes
/ works round this problem.

Ceg - you need an xorg.conf with this line in it. However you may not
have an existing xorg.conf - the following xorg.conf worked for me. If
you need more help than this, you should probably ask in the forums.


Section "Screen"
        Identifier      "Default Screen"
        DefaultDepth    24
EndSection


Section "Device"
        Identifier      "Default Device"
        Driver  "ati"
        Option "EXANoDownloadFromScreen" "true"
EndSection

-- 
screen corruption with Radeon 4770
https://bugs.launchpad.net/bugs/440544
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