I used a laptop with the ATI Mobility Radeon X1600 about a year ago, and the open-source Radeon driver worked well with it, including Compiz. AMD stopped closed-source driver support for that GPU back in early 2009 -- Catalyst for Linux 9.3 was the last closed-source driver for it -- so the FGLRX driver is a big no-no for the Mobility Radeon X1600 and today's kernels. Am I correct in assuming you are now using the open-source Radeon driver? The RadeonHD driver is dead and buried (see The open-source RadeonHD driver bows out
). The procedure for installing the Radeon driver for your GPU is the same as that given for the ATI Radeon 9550 GPU in the post Re: ATI Radeon 9550 - need help
. Give that a try if you haven't already.