I tried without the TexturedVideo option and it does not seem to make any difference.
IIUC it should not be necessary to specify the Composite option, shouldn't it be on by default in Hardy? What's the use of DRI Mode 0666?
I'm not sure what else to try. When I run glxinfo, I get:
but the X log file says DRI is activated:
direct rendering: No (If you want to find out why, try setting LIBGL_DEBUG=verbose)
(II) RADEON(0): Direct rendering experimental on RS400/Xpress 200 enabled
what i can tell you is to recompile the xf86-video-ati manually, the git version if possible, and see if exa and textured are enabled during configure phase.
also you could use my xorg.conf here:
be aware that i'm using evdev and that the device options include a lot of tweaks for fglrx. the options not recognized by the radeon driver will just be ignored.
if you don't use evdev and synaptic touchpad replace the input devices with yours.
also the monitor section would be different that yours (maybe) and the screen resolutions also could be different.
if you need help on what the various configs do ask for it.
you can remove the device options not recognized by radeon without any fear. they would be shown as warnings in the xorg.0.log.