Ubuntu 8.04: ATI direct rendering issue

After upgrade to Ubuntu 8.04 i got direct rendering broken:

$ glxinfo |grep direct
3:direct rendering: No

Though everything was configured properly and seemed to work ok.

Removing MESA drivers solved the issue.

Overall: 8.04 is still kinda slow comparing to 7.10. (Sometimes I think I shouldn't have upgraded to 8.04)