Same problem, when i install ubuntu lucid with "KMS"=ON the 3D effect
with compiz are very slow, the solution for me was  to desactived KMS
with this command:

sudo su
echo options radeon modeset=0 > /etc/modprobe.d/radeon-kms.conf

Now compiz is working fine, but i hope they gonna solve this bug! :)

my graphic card -> ati x1650pro agp

my motherboard -> asus A7N8X-Deluxe rev. 2.0

-- 
[KMS][RV530] compiz very slow on AGP hardware
https://bugs.launchpad.net/bugs/496653
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