This bug will probably be solved on Maverick.

I'm already running Gallium 3D using xorg-edgers ppa and only now it is
possible to have KMS (ON) and Compiz (ON) on a usable way

It still lacks some adjustment (performance wise). Artifacts are showing
up. But, finally Gallium has arrived!!!

I did even get my HD playback back on VLC.

your mileage may vary.

I don't recommend to use Gallium 3D on production machines... yet.

http://i.imgur.com/2Phgl.png

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