I'm forwarding a bug from a Ubuntu user:

"Using -ati 6.8.0 on Sony with ATI Mobility M1

I observe a line of garbled pixels under the mouse cursor, for example on the initial login screen, and then they stay there no matter what is redrawn, like that they are "burned in". Moving mouse cursor keep these pixels on the initial location, and doesn't produce new, until something happens, when the "burned in" pixels appear somewhere else, but again under the current place of the cursor.

The effect never happens in Vesa mode. Here's conf:

Section "Device"
 Identifier "Generic Video Card"
 Boardname "ATI Rage Mobility"
 Busid "PCI:1:0:0"
 Driver "ati"
 Screen 0
 Vendorname "ATI"
 Option "MergedFB" "off"
EndSection

now, from all the observations, I'm quite sure that it's drawn by the same mechanism that draws the main "hardware cursor", and that what I see must be a second "hardware cursor" which "show flag" is unintentionally activated by some initialization and reinitialization procedure.

http://launchpadlibrarian.net/14062548/Xorg.0.log
http://launchpadlibrarian.net/14062622/SecondCursorDrop1.jpg
http://launchpadlibrarian.net/14062647/SecondCursorDrop2.jpg