Is this a regression? Were you able to play 3D games with earlier
versions? Please try re-booting with earlier kernels (go into grub to
select them) and see if that is sufficient to get the 3D games to work
properly again.
Since disabling KMS is enough to make this work properly, I'm gathering
that this is an issue with the DRM code in the kernel. So I'll reassign
to the kernel for now.
** Package changed: xserver-xorg-video-ati (Ubuntu) => linux (Ubuntu)
** Changed in: linux (Ubuntu)
Status: Confirmed => Incomplete
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No Fullscreen-3D/Resolution switching with KMS enabled
https://bugs.launchpad.net/bugs/549601
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