Gunne
Thanks alot. Ok. direct render is on now. But my God its slow. WIth this same radeon 7500 and Debian 2.6.10 kernel I was getting 400+ fps with glxgears and 3d games were fast. Gears is very slow with ubuntu and games are slow. Here is my glxinfo now: 
Code:
 id dep cl sp sz l  ci b ro  r  g  b  a bf th cl  r  g  b  a ns b eat
----------------------------------------------------------------------
0x23 24 tc  0 32  0 r  .  .  8  8  8  8  0 24  0  0  0  0  0  0 0 None
0x24 24 tc  0 32  0 r  .  .  8  8  8  8  0 24  8  0  0  0  0  0 0 None
0x25 24 tc  0 32  0 r  .  .  8  8  8  8  0 24  0 16 16 16 16  0 0 Slow
0x26 24 tc  0 32  0 r  .  .  8  8  8  8  0 24  8 16 16 16 16  0 0 Slow
0x27 24 tc  0 32  0 r  y  .  8  8  8  8  0 24  0  0  0  0  0  0 0 None
0x28 24 tc  0 32  0 r  y  .  8  8  8  8  0 24  8  0  0  0  0  0 0 None
0x29 24 tc  0 32  0 r  y  .  8  8  8  8  0 24  0 16 16 16 16  0 0 Slow
0x2a 24 tc  0 32  0 r  y  .  8  8  8  8  0 24  8 16 16 16 16  0 0 Slow
0x2b 24 dc  0 32  0 r  .  .  8  8  8  8  0 24  0  0  0  0  0  0 0 None
0x2c 24 dc  0 32  0 r  .  .  8  8  8  8  0 24  8  0  0  0  0  0 0 None
0x2d 24 dc  0 32  0 r  .  .  8  8  8  8  0 24  0 16 16 16 16  0 0 Slow
0x2e 24 dc  0 32  0 r  .  .  8  8  8  8  0 24  8 16 16 16 16  0 0 Slow
0x2f 24 dc  0 32  0 r  y  .  8  8  8  8  0 24  0  0  0  0  0  0 0 None
0x30 24 dc  0 32  0 r  y  .  8  8  8  8  0 24  8  0  0  0  0  0 0 None
0x31 24 dc  0 32  0 r  y  .  8  8  8  8  0 24  0 16 16 16 16  0 0 Slow
0x32 24 dc  0 32  0 r  y  .  8  8  8  8  0 24  8 16 16 16 16  0 0 Slow
name of display: :0.0
display: :0  screen: 0
direct rendering: Yes
server glx vendor string: SGI
server glx version string: 1.2
server glx extensions:
    GLX_ARB_multisample, GLX_EXT_visual_info, GLX_EXT_visual_rating,
    GLX_EXT_import_context, GLX_OML_swap_method, GLX_SGI_make_current_read,
    GLX_SGIS_multisample, GLX_SGIX_hyperpipe, GLX_SGIX_swap_barrier,
    GLX_SGIX_fbconfig
client glx vendor string: SGI
client glx version string: 1.4