FGLRX with compiz fusion and KVM XP crashes X11

Updated 8.04 base to latest today, have been running it for a while and enabled compiz fusion. Once I launch KVM with my Windows XP VM and then start using heavy I/O it will crash X11. I dont even have to be moving the mouse or any windows, effects, etc it will just crash almost predictably (3 times in 10 minutes).

Kernel: 2.6.24-16-generic #1 SMP Thu Apr 10 13:23:42 UTC 2008 i686 GNU/Linux

Laptop: Lenovo T60, 2GB ram

Hardware:
00:00.0 Host bridge: Intel Corporation Mobile 945GM/PM/GMS, 943/940GML and 945GT Express Memory Controller Hub (rev 03)
00:01.0 PCI bridge: Intel Corporation Mobile 945GM/PM/GMS, 943/940GML and 945GT Express PCI Express Root Port (rev 03)
00:1b.0 Audio device: Intel Corporation 82801G (ICH7 Family) High Definition Audio Controller (rev 02)
00:1c.0 PCI bridge: Intel Corporation 82801G (ICH7 Family) PCI Express Port 1 (rev 02)
00:1c.1 PCI bridge: Intel Corporation 82801G (ICH7 Family) PCI Express Port 2 (rev 02)
00:1c.2 PCI bridge: Intel Corporation 82801G (ICH7 Family) PCI Express Port 3 (rev 02)
00:1c.3 PCI bridge: Intel Corporation 82801G (ICH7 Family) PCI Express Port 4 (rev 02)
00:1d.0 USB Controller: Intel Corporation 82801G (ICH7 Family) USB UHCI Controller #1 (rev 02)
00:1d.1 USB Controller: Intel Corporation 82801G (ICH7 Family) USB UHCI Controller #2 (rev 02)
00:1d.2 USB Controller: Intel Corporation 82801G (ICH7 Family) USB UHCI Controller #3 (rev 02)
00:1d.3 USB Controller: Intel Corporation 82801G (ICH7 Family) USB UHCI Controller #4 (rev 02)
00:1d.7 USB Controller: Intel Corporation 82801G (ICH7 Family) USB2 EHCI Controller (rev 02)
00:1e.0 PCI bridge: Intel Corporation 82801 Mobile PCI Bridge (rev e2)
00:1f.0 ISA bridge: Intel Corporation 82801GBM (ICH7-M) LPC Interface Bridge (rev 02)
00:1f.1 IDE interface: Intel Corporation 82801G (ICH7 Family) IDE Controller (rev 02)
00:1f.2 SATA controller: Intel Corporation 82801GBM/GHM (ICH7 Family) SATA AHCI Controller (rev 02)
00:1f.3 SMBus: Intel Corporation 82801G (ICH7 Family) SMBus Controller (rev 02)
01:00.0 VGA compatible controller: ATI Technologies Inc M52 [Mobility Radeon X1300]
02:00.0 Ethernet controller: Intel Corporation 82573L Gigabit Ethernet Controller
03:00.0 Network controller: Intel Corporation PRO/Wireless 3945ABG Network Connection (rev 02)
15:00.0 CardBus bridge: Texas Instruments PCI1510 PC card Cardbus Controller

X11 Backtrace:
<snip>
SetClientVersion: 0 9
Warning: LookupDrawable()/SecurityLookupDrawable() are deprecated. Please convert your driver/module to use dixLookupDrawable().
Receive 3D performance mode message with status: 00000001
(II) XAA: Evicting pixmaps

Backtrace:
0: /usr/bin/X(xf86SigHandler+0x7e) [0x80c780e]
1: [0xb7fb3420]
2: /usr/lib/dri/fglrx_dri.so [0xb4e2d903]
3: /usr/lib/dri/fglrx_dri.so [0xb4e2fa62]
4: /usr/lib/dri/fglrx_dri.so [0xb4e3ee6f]
5: /usr/lib/dri/fglrx_dri.so [0xb4e3f03d]
6: /usr/lib/dri/fglrx_dri.so [0xb497df88]
7: /usr/lib/dri/fglrx_dri.so [0xb4bf9145]
8: /usr/lib/xorg/modules/extensions//libglx.so [0xb7c176e5]
9: /usr/lib/xorg/modules/extensions//libglx.so [0xb7bdc99c]
10: /usr/lib/xorg/modules/extensions//libglx.so [0xb7bdc077]
11: /usr/lib/xorg/modules/extensions//libglx.so [0xb7be0996]
12: /usr/bin/X [0x81506de]
13: /usr/bin/X(Dispatch+0x2cf) [0x808d8df]
14: /usr/bin/X(main+0x48b) [0x807471b]
15: /lib/tls/i686/cmov/libc.so.6(__libc_start_main+0xe0) [0xb7d45450]
16: /usr/bin/X(FontFileCompleteXLFD+0x201) [0x8073a91]

Fatal server error:
Caught signal 8. Server aborting

(II) AIGLX: Suspending AIGLX clients for VT switch