I don't think you ever spent the time I spent tweaking xorg.conf + ATI + XGL (i.e. no AIGLX) "ConfusedComputerUser"
I'm making up for lost time.
On that note it's wierd, The xorg.conf file is empty for me. so that adds an extra layer of enjoyment.
Now I have installed Linux mint (based on ubuntu). It is a bit faster than ubuntu. No prob with ati graphics.
I'll give this a try. Thanks for the post.