I tried to apply two of the workarounds listed in the description.

* Disable compiz:  Disabled, desktop is still very slow (although usable)
* Disable kms (grub: radeon.modeset=0): Enabling or disabling doesn't have 
impact on performance

-- 
[RS100] desktop became slow after upgrading to Lucid
https://bugs.launchpad.net/bugs/544496
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which is the registrant for xserver-xorg-driver-ati.

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