Hmm, ok
There has been issues with ATI and xgl. As far as I'm aware, they aren't resolved. I have to disable xgl on my debian distro cause it wouldn't play videos at all, X would just crash.
Can't explain what you're seeing... I have this link to the Unofficial ATI wiki,
http://wiki.cchtml.com/index.php/Main_Page, so have a quick check around there too.