I got the ATI card workin but desktop keeps crashing!
 

Well I finally got my ATI x1600 card working with right now with the driver but now there's a new problem: I have set up the 3D Desktop and I really dig the effects but the desktop keeps crashing after a little while of wobbling windows and cubespinning but it's not like it comletely crashes, just freezes. The icons light up when I go over them with the mouse though. What the H is wrong now??

Are you using the ATI proprietary drive from their website? What does glxinfo yield? It should say opengl vendor ATI. Most likely though it is a bug with the driver, try an update.

I would agree that it is a bug, I had similar problem when using the 3D-Desktop and my ATI, I kept getting thrown out of KDE (even when I was doing nothing!!), as soon as I disabled the 3D-Desktop everything was stable again.

Ok... I updated compitz, downloaded the newest ati-driver and installet that again. First off I still have the problem that the 3D-Desktop hangs after a little while, usually after five minutes. And on top of that gl games tend to skip or lose their acceleration when started on the 3D desktop and what surprises me most is that simple games like toppler or CDvST run sluggish while they used to work great in standard VESA mode, which gives me the impression that either the latest ATI driver or the compitz update turned out even more buggy than the older ones :(
Also I cannot select AIGLX on the 3D desktop setup. It gives me the option but it's greyed out and I can't select to use that instead of XGL. What's up with that now??

The reason 3d games run rediculously slow is because you can't run hardware acceleration and Xgl at the same time, that's a fact. Just run glxgears in console and it'll give some error message about no dri. Does your card support Aiglx or just xgl?

ATI drivers do not support AIGLX. XGL is the only option for now. So you can either run a 3Ddesktop and no games or no 3D and game.