Just so you know what I did to make it work. So originally I was running 8.04 but ATI driver was not being recognized. Not able to get full functionality out of my graphics driver. I did many things while using 8.04 but was not successful.
So I did the following:
1) Upgraded to 8.10. This did not work either. Tried several things while using 8.10 but was not successful.
2) So, I upgraded to 9.04, thinking that something might make it work. Again nothing seemed to work.
3) Finally I had to RE_INSTALL 8.04. Not the best solution but I figured something was missing when I installed originally.
4) After installing 8.04 I then immediatley went to www.amd.com
and downloaded the following application: ati-driver-installer-9-3-x86.x86_64.run
I followed the instructions and ran the ati driver installer & rebooted
After the reboot the system will ask you to enable the ati drivers. DON'T!! Just leave everything as is. I repeat DON'T enable the driver.
That's it. Graphics card is enabled and able to use Compiz!
Hope this helps someone.