You choose "radeon" in your .conf file.
This driver is for ATI integrated chipset and provides hardware acceleration only for a limited models of chip.
I have a laptop with an integrated ATI chipset (IGP 340M) using such driver but hardware acceleration, unfortunately, is missing. I'd suggest you go here
http://www.x.org/X11R6.8.2/doc/radeon.4.html
and check if 3D acceleration is available for your chipset, in order you avoid time wasting.
Another chance if you google around the web, may be there's a patch somewere.
Hope this helps
Ciao