Most probably it is the AMD "pro" driver...
OS: Ubuntu 12.04
Videocard: HD 6850
Ati driver version: 12.4
When dragging a window (or playing video) the movement is non-smooth. It is worse in Unity 3d. It is also seen in Gnome3. On unity-2d there is no problem. Is this a compiz issue or amd driver or X11 issue. Is there a solution. Thanks
Most probably it is the AMD "pro" driver...
It depends on your workflow. There is the free driver which is still not good enough for high performance 3D, but has perfect 2D. Also, I am not sure if it supports 3 displays. I honestly do not know that. You could also try a different desktop environment, like KDE, as Unity is a performance killer.
Really? The model of your card suggests something much more intensive. In this case you should be fine with open driver. Just remove the proprietary driver from your system. You installed it with jockey program or with installer from AMD website? If jockey, then just the same program to remove the driver. If separate driver binary, then I don't remember how to do it. There is a way to do it.
Then maybe you will try FOSS driver instead of proprietary? To do that you need to uninstall proprietary driver and remove xorg.conf, if you have it.
You also maybe want to set different power profile, to reduce noise.