flgrx - Fullscreen problems

Basically I am having a problem with the latest fglrx proprietary driver. The ATI is a Radeon X300SE and the problem is that whenever I run a fullscreen app (often games) the screen ends up becoming pixelated and “corrupted” (for example you can see sections of windows which you should not be seeing since its full screen).

This happened after a normal configuration of SAX2, and then I did some more manual configurations of xorg.conf taking into account this site Setup an ATI card with the new FGLRX drivers for Compiz-Fusion - Compiz Community Forums and no matter what options I chose nothing worked

Here is my xorg.conf (nothing special, I reconfigured it with Sax2 so its the default configuration with FGLRX) - Note that I don’t have any problems with compiz
Hardware Profile

Any help would be appreciated, thanks