ATI Video hangs with pinstripe effect

[LaoTzu13l]

I don't know to much about X, as I've tended to stay away from touching it, so I don't know exactly what is causing this bug. Basically, when I do something like open a game like alien arena, or anything like that, it will either hang on load, or hang changing graphic settings. The same thing happens if i try and go to a virtual terminal, it will hang. Best way I can describe it is it looks like pinstripe effect, occasionally in colors and going horizontal, going to virtual terminal will lead to a black screen with no response. Any help would be appreciated as to what is causing this and if it is fixable. Here's my xorg.conf and what lspci shows my graphics card as being, and the Ubuntu version is 8.04 Desktop (amd64)

ATI Technologies Inc Radeon XPRESS 200M 5955 (PCIE)

lao@lao-laptop:~$ cat /etc/X11/xorg.conf
# xorg.conf (X.Org X Window System server configuration file)
#
# This file was generated by dexconf, the Debian X Configuration tool, using
# values from the debconf database.
#
# Edit this file with caution, and see the xorg.conf manual page.
# (Type "man xorg.conf" at the shell prompt.)
#
# This file is automatically updated on xserver-xorg package upgrades *only*
# if it has not been modified since the last upgrade of the xserver-xorg
# package.
#
# If you have edited this file but would like it to be automatically updated
# again, run the following command:
#   sudo dpkg-reconfigure -phigh xserver-xorg

Section "Screen"
        Identifier      "aticonfig-Screen[0]"
        Device          "aticonfig-Device[0]"
        Monitor         "aticonfig-Monitor[0]"
        SubSection "Display"
                Viewport        0       0
                Depth   24
	EndSubSection
	Defaultdepth	24
EndSection

Section "Device"
	Identifier	"aticonfig-Device[0]"
	Driver		"fglrx"
	Option		"VideoOverlay"	"on"
	Option		"OpenGLOverlay"	"off"
EndSection

Section "InputDevice"
	Identifier	"Generic Keyboard"
	Driver		"kbd"
	Option		"XkbRules"	"xorg"
	Option		"XkbModel"	"pc105"
	Option		"XkbLayout"	"us"
EndSection

Section "InputDevice"
	Identifier	"Configured Mouse"
	Driver		"mouse"
	Option		"CorePointer"
EndSection

Section "InputDevice"
	Identifier	"Synaptics Touchpad"
	Driver		"synaptics"
	Option		"SendCoreEvents"	"true"
	Option		"Device"	"/dev/psaux"
	Option		"Protocol"	"auto-dev"
	Option		"HorizEdgeScroll"	"0"
EndSection

Section "ServerLayout"
	Identifier	"Default Layout"
  screen 0 "aticonfig-Screen[0]" 0 0
	Inputdevice	"Synaptics Touchpad"
EndSection

Section "Module"
	Load		"glx"
EndSection

Section "Monitor"
	Identifier	"aticonfig-Monitor[0]"
	Option		"VendorName"	"ATI Proprietary Driver"
	Option		"ModelName"	"Generic Autodetecting Monitor"
	Option		"DPMS"	"true"
EndSection

Section "Extensions"
	Option		"Composite"	"Enable"
EndSection

I don't think the virtual terminal thing was part of the opengl issue, but i got it tooken care of on the irc chat

change the last bit of the xorg.conf file to disable composite

Section "Extensions"
	Option		"Composite"	"Disable"
EndSection