https://bugs.freedesktop.org/show_bug.cgi?id=30313
--- Comment #14 from Marek Olšák maraeo@gmail.com 2010-09-26 06:31:58 PDT --- Tomasz>
RADEON_DEBUG=notiling may have some side effects and may even change behavior of other bugs. That patch was just a guess of mine. But you have an RV350 GPU so the patch won't help you, it only makes R350 be considered as RV350-based with regard to tiling.
Please file separate bugs for your issues. I consider this issue fixed and am waiting for a clarification on why R350 behaves like that, and then I'll close the bug.