Just four days ago the RadeonHD 1.2.0 driver
was released as the first xf86-video-radeonhd driver update in several months. The RadeonHD 1.2.0 driver added support for several new Radeon HD 3XXX GPUs, R500 2D XAA/EXA acceleration, and many other underlying changes. Today, however, that release has been succeeded by RadeonHD 1.2.1.
RadeonHD 1.2.1 has an added build rule for rhd_dump to Imakefile, adds two new PCI IDs for the Radeon HD 3400 and 3600 ASICs, drops an unused Radeon HD 3650, and fixes a broken assert() in rhd_id.c. Check out their xf86-video-radeonhd git tree for the latest source. The Radeon HD 3200 (780G IGP)
isn't yet supported by this driver, but the initial support is expected soon.