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I am able to enjoy all of the compiz desktop effects with screen resolution set lower than native, which is 1920X1080. As soon as I switch to this resolution, when I go to change a wallpaper, the screen turns to colored lines or freezes. All other effects work fine. It is only the changing of wallpaper that causes this. I have read that the ATI Xpress 200 GFX card is no longer supported by Linux, but there must be a way to rectify this one problem. Thanks in advance.

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Are you using the fglrx driver? Using the open source radeon driver might solve your problem.
Can you log out and log in again after you changed the wallpaper and the coloured lines appeared? Does this solve your problem?

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give a try to

compiz --replace

from a terminal.

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