Mesa DRI to the rescue!

Following up to my last post, I would say that I have found a replacement for the proprietary catalyst driver and that is the "mesa-dri-drivers-experimental" package. People with Fedora 12 and cards < [ATI R-HD 5xxx] should give them a go. Compiz works flawlessly and video playback has no issues also. I also have not had a crash till now. Driver seems pretty stable given its "experimental" name. Not sure about games though but they should also be fine. Installing the driver is as easy as doing:

# yum install mesa-dri-drivers-experimental

and a reboot. I would recommend them for anyone troubled by the proprietary ATI crap.