ATI driver X1200

I have been getting some freezing while using the x1200 ATI driver so I was trying to use the radeon one. My xorg looks like this:

Section “Device”
BoardName “Radeon X1200”
BusID “1:5:0”
Driver “radeonhd”
Identifier “Device[0]”
Option “monitor-PANEL” “Monitor[0]”
VendorName “ATI”
Option “XAANoOffscreenPixmaps”

however I get really bad flashing while typing and moving windows. Did I configure this wrong? Any ideas?