I'm using Kubuntu 10.04.1 with 2.6.35-19-generic kernel and radeon driver labeled "1:6.13.99+git20100907.b90cb61c-0ubuntu0sarvatt~lucid" from the edgers repository. The video card is HD3870.
When running with KMS, I'm seeing flickering in Baldur's Gate Tutu (which is based on Baldur's Gate II engine, so the bug is probably also present there), where small random rectangles flash brightly for a fraction of second and then dim again. The issue is apparent even when I don't do anything, but when I move the mouse cursor around, it becomes worse, and the mouse cursor disappears from time to time when moved.
Tested wine-1.3.2 and wine-1.1.44, the issue occurs in both. I do not use compositing. The game is configured to use 3D acceleration (it won't run otherwise).
The issue doesn't occur with KMS disabled.
Created attachment 38635 [details]
firstname.lastname@example.org, Ubuntu 10.04 Desktop reached EOL on May 9, 2013. For more on this, please see https://wiki.ubuntu.com/Releases.
If this is reproducible with a supported release, it will help immensely if you filed a new report with Ubuntu by ensuring you have the package xdiagnose installed, and that you click the Yes button for attaching additional debugging information running the following from a terminal:
Also, please feel free to subscribe me to it.
For more on why this is helpful, please see https://wiki.ubuntu.com/ReportingBugs.