Obiwan did the same and and posted about it in this thread
Perhaps his solution will work for you..
There are new packages of compiz-fusion in backports for 2008
It seems not all the packages were updated to 0.6.2-2 if you do a search in the MCC for compiz you'll see some of the packages sporting 0.6.0-1..compiz-bcop and compiz-fusion-plugins-extra
compiz-fusion main plugins was just updated to 0.6.2-2 this am for example.
Also emerald is still at 0.5.2-2.
I just booted into compiz everything runs smoother with ATI's new 8.43 drivers and compiz 0.6.2-2..I just played a quick round of Ut2k4 very smooth vid playback was ok with both mplayer and vlc..firefox scrolling is still slower but not as bad as it was with the older compiz..
I'm just using the default compiz-decorator-kde - Version: 0.6.2-2mdv2008.0
I don't have a lot off extra's enabled since I've never really played with compiz.
the water effects do work I haven't tried fire yet.