Comment 30 for bug 687489

It appears to me that I might have found a configuration that works quite good for me:
I'm now running the most current mainline kernel (linux-image-2.6.37-999-generic_2.6.37-999.201012151130_i386.deb). Desktop effects were still disabled by default, but I could enable them by turning of the functionality checks for desktop effects (K Menu -> System Settings -> Desktop Effects -> Advanced -> Disable functionality checks).

So far, the performance is good (even smooth fullscreen playback of YouTube flash videos), and the system is running stable.

Before, I had also tried out a natty live cd (desktop effects seemed to be enabled there), and the mainline kernel v2.6.32.27.12-lucid (linux-image-2.6.32-0206322712-generic_2.6.32-0206322712.201012110909_i386.deb, desktop effects enabled even with functionality checks enabled).