Ubuntu 8.04: used to have all maxed options but now no

I use SL on my local grid for designs with all options maxed out on my Ubuntu 8.04 at 1280x768. But I had a couple of system updates done in the past 3 weeks and now, it is major lag city everywhere (local or Online grids). I tried all absolute low options and 800x600 but it does not fix anything. So something changed in my Ubuntu to cause this. I have no clues what ?

I posted a thread in the Ubuntu forum about it (I initially thought I had a wrong OpenGL version but that is not the problem)

Ubuntu thread : http://ubuntuforums.org/showthread.php?t=1004727

Any suggestions ?


glxinfo
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_import_context, GLX_EXT_texture_from_pixmap,
GLX_EXT_visual_info, GLX_EXT_visual_rating, GLX_OML_swap_method,
GLX_SGIS_multisample, GLX_SGIX_fbconfig, GLX_SGIX_visual_select_group
client glx vendor string: SGI
client glx version string: 1.4
client glx extensions:
GLX_ARB_get_proc_address, GLX_ARB_multisample, GLX_EXT_import_context,
GLX_EXT_visual_info, GLX_EXT_visual_rating, GLX_MESA_allocate_memory,
GLX_MESA_swap_control, GLX_MESA_swap_frame_usage, GLX_OML_swap_method,
GLX_OML_sync_control, GLX_SGI_make_current_read, GLX_SGI_swap_control,
GLX_SGI_video_sync, GLX_SGIS_multisample, GLX_SGIX_fbconfig,
GLX_SGIX_pbuffer, GLX_SGIX_visual_select_group,
GLX_EXT_texture_from_pixmap
GLX version: 1.2
GLX extensions:
GLX_ARB_get_proc_address, GLX_ARB_multisample, GLX_EXT_import_context,
GLX_EXT_visual_info, GLX_EXT_visual_rating, GLX_OML_swap_method,
GLX_SGIS_multisample, GLX_SGIX_fbconfig, GLX_SGIX_visual_select_group
OpenGL vendor string: ATI Technologies Inc.
OpenGL renderer string: ATI RADEON 9600 Series
OpenGL version string: 2.1.7412 Release
OpenGL extensions:
GL_AMD_performance_monitor, GL_ARB_depth_texture, GL_ARB_draw_buffers,
GL_ARB_fragment_program, GL_ARB_fragment_shader, GL_ARB_multisample,
GL_ARB_multitexture, GL_ARB_occlusion_query, GL_ARB_pixel_buffer_object,
GL_ARB_point_parameters, GL_ARB_point_sprite, GL_ARB_shader_objects,
GL_ARB_shading_language_100, GL_ARB_shadow, GL_ARB_shadow_ambient,
GL_ARB_texture_border_clamp, GL_ARB_texture_compression,
GL_ARB_texture_cube_map, GL_ARB_texture_env_add,
GL_ARB_texture_env_combine, GL_ARB_texture_env_crossbar,
GL_ARB_texture_env_dot3, GL_ARB_texture_float,
GL_ARB_texture_mirrored_repeat, GL_ARB_texture_rectangle,
GL_ARB_transpose_matrix, GL_ARB_vertex_buffer_object,
GL_ARB_vertex_program, GL_ARB_vertex_shader, GL_ARB_window_pos,
GL_ATI_draw_buffers, GL_ATI_envmap_bumpmap, GL_ATI_fragment_shader,
GL_ATI_meminfo, GL_ATI_separate_stencil, GL_ATI_texture_env_combine3,
GL_ATI_texture_float, GL_EXT_abgr, GL_EXT_bgra, GL_EXT_blend_color,
GL_EXT_blend_func_separate, GL_EXT_blend_minmax, GL_EXT_blend_subtract,
GL_EXT_compiled_vertex_array, GL_EXT_copy_texture,
GL_EXT_draw_range_elements, GL_EXT_fog_coord, GL_EXT_framebuffer_object,
GL_EXT_gpu_program_parameters, GL_EXT_multi_draw_arrays,
GL_EXT_packed_depth_stencil, GL_EXT_packed_pixels,
GL_EXT_point_parameters, GL_EXT_rescale_normal, GL_EXT_secondary_color,
GL_EXT_separate_specular_color, GL_EXT_shadow_funcs, GL_EXT_stencil_wrap,
GL_EXT_subtexture, GL_EXT_texgen_reflection, GL_EXT_texture3D,
GL_EXT_texture_compression_s3tc, GL_EXT_texture_cube_map,
GL_EXT_texture_edge_clamp, GL_EXT_texture_env_add,
GL_EXT_texture_env_combine, GL_EXT_texture_env_dot3,
GL_EXT_texture_filter_anisotropic, GL_EXT_texture_lod_bias,
GL_EXT_texture_mirror_clamp, GL_EXT_texture_object,
GL_EXT_texture_rectangle, GL_EXT_texture_sRGB, GL_EXT_vertex_array,
GL_KTX_buffer_region, GL_NV_blend_square, GL_NV_texgen_reflection,
GL_SGIS_generate_mipmap, GL_SGIS_texture_edge_clamp, GL_SGIS_texture_lod,
GL_WIN_swap_hint, WGL_EXT_swap_control

lspci
00:00.0 Host bridge: VIA Technologies, Inc. VT8377 [KT400/KT600 AGP] Host Bridge
00:01.0 PCI bridge: VIA Technologies, Inc. VT8235 PCI Bridge
00:10.0 USB Controller: VIA Technologies, Inc. VT82xxxxx UHCI USB 1.1 Controller (rev 80)
00:10.1 USB Controller: VIA Technologies, Inc. VT82xxxxx UHCI USB 1.1 Controller (rev 80)
00:10.2 USB Controller: VIA Technologies, Inc. VT82xxxxx UHCI USB 1.1 Controller (rev 80)
00:10.3 USB Controller: VIA Technologies, Inc. USB 2.0 (rev 82)
00:11.0 ISA bridge: VIA Technologies, Inc. VT8235 ISA Bridge
00:11.1 IDE interface: VIA Technologies, Inc. VT82C586A/B/VT82C686/A/B/VT823x/A/C PIPC Bus Master IDE (rev 06)
00:11.5 Multimedia audio controller: VIA Technologies, Inc. VT8233/A/8235/8237 AC97 Audio Controller (rev 50)
00:12.0 Ethernet controller: VIA Technologies, Inc. VT6102 [Rhine-II] (rev 74)
01:00.0 VGA compatible controller: ATI Technologies Inc RV350 AR [Radeon 9600]
01:00.1 Display controller: ATI Technologies Inc RV350 AR [Radeon 9600] (Secondary)

sudo lshw -C video
[sudo] password for ibmoper:
*-display:0
description: VGA compatible controller
product: RV350 AR [Radeon 9600]
vendor: ATI Technologies Inc
physical id: 0
bus info: pci@0000:01:00.0
version: 00
width: 32 bits
clock: 66MHz
capabilities: agp agp-3.0 pm vga_controller bus_master cap_list
configuration: driver=fglrx_pci latency=255 mingnt=8 module=fglrx
*-display:1 UNCLAIMED
description: Display controller
product: RV350 AR [Radeon 9600] (Secondary)
vendor: ATI Technologies Inc
physical id: 0.1
bus info: pci@0000:01:00.1
version: 00
width: 32 bits
clock: 66MHz
capabilities: pm bus_master cap_list
configuration: latency=32 mingnt=8

Desktop effects on? just saw that in another thread..

No

Did one of your updates manage to get rid of your fglrx video driver and replace it with one of the open Mesa drivers? Verify that you still have ATI's driver installed and working.