Bad 3D Performance in Ubuntu 12.04

I already posted a question before but I didn't really get any advice/help. I'll be a bit more brief/general in hope it'll help.

I have an MSI HD 7850 with the Catalyst 12.4 drivers installed. I've found that I'm having bad 3D performance for some reason but I'm not entirely sure what. I suspect it may just that the graphics card is new and AMD just need to work on their drivers but it would be nice to get advice and narrow the problem down so that I can be sure rather than wait for driver updates that may not even help.

I ran gxlgears to give some general idea of how bad the performance is. At default size it is averaging around 2000 FPS. The command glxinfo confirms the renderer is using AMD Radeon HD 7800 Series with OpenGL version 4.2.

Edits below:

As asked for others:

lspci -v output is here.
fglrxinfo output is here
xvinfo output is here
glxinfo | grep rendering says yes for direct rendering.

These confirmed that everything was configured correctly.

Within Unity and Gnome Classic:
glxgears had an FPS of around 2000 FPS
fgl_glxgears had an FPS of around 544 FPS

Within LDXE:
glxgears had an FPS of around 4600 FPS
fgl_glxgears had an FPS of around 1600 FPS

In the end it was discovered that Compiz was causing a large performance decrease and solution was simply to change window manager for the time being. Thanks to TechZilla for all his help!

The first thing you need to check is GLX Direct Rendering, You can use the generic mesa-utils, or fglrxinfo which is provided by FGLRX. You already have fglrxinfo installed, so you should try that first.

Run this command in a terminal.

fglrxinfo

Report back what the output shows, which will tell us if the fglrx is configured correctly.

next get glxinfo, which is installed via

sudo apt-get install  mesa-utils

Run this command to get your direct rendering status, it will be a yes or no answer.

glxinfo  | grep rendering

Use xvinfo to check for Video Overlay. Make sure x11-utils package is installed.

sudo apt-get install x11-utils

Run this command to check for Video Overlay, should be a long listing, not an error.

xvinfo

This is just the basics, it doesn't verify the new HD video extensions. It should however, tell you if acceleration is even working.

Update:

Your settings are correct, and composting has been identified as bringing down your performance. Composting often brings down performance, especially when playing games in WINE.