Slow X after kernel update to 2.6.27.39 [SOLVED]

As the title says. System is openSUSE 11.1 running KDE3.5 with KDE4.3 also installed to use desktop effects in KDE3.5.

After update X uses 90% CPU to scroll down a page in FF, OOo or even in text editor, either with KWin and KWin4. With KWin4 desktop effects can’t be enabled in system config.

From Xorg.conf:

Section "Device"
  BoardName    "ATI Radeon HD 3200 Graphics"
  Driver       "fglrx"
  Identifier   "Device[0]"
  Option       "XAANoOffscreenPixmaps" "true"
  Option       "Capabilities" "0x00000000"
  Option       "OpenGLOverlay" "off"
  Option       "FSAAScale" "0"
  Option       "FSAAEnable" "off"
  Option       "VideoOverlay" "on"
  Screen       0
  VendorName   "ATI"

Rolling back to kernel 2.6.27.37 fixed the problem.

In another machine with NVidia graphics there is no problem with the updated kernel. It seems to be related to the ATI graphics/driver.