Recently upgraded xf86-video-ati from version 6.13.2-1-i686 to version 6.14.0-1-i686 in arch linux. when I open xterm, aterm, or eterm my x environment becomes scrambled and I can not make anything out. X does not freeze, and no errors are reported in the log files or the tty display. This problem occured using both fluxbox and gnome. Downgrading back to version 6.13.2-1.i686 solved the problem. My video card is detected as: 01:00.0 VGA compatible controller: ATI Technologies Inc R480 [Radeon X850Pro] using lspci.
Sounds like a duplicate of bug 33929.
Yes, I'd say it is a duplicate, sorry. Option "ColorTiling" "Off" fixed the problem for me.
*** This bug has been marked as a duplicate of bug 33929 ***
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