The live CD of Paldo 1.12 includes Compiz?

The Live CD doesn't include Compiz yet but you can install it with "upkg-install compiz-fusion" (or just compiz if you don't want the extra plugins). This command also works when running from the Live CD, assuming you have a working internet connection.

Hi! I installed compiz-fusion, but it simply doesn't work! I've downloaded the ati drivers too, have them installed and working right, but compiz isn't active. Can someone show me why and a way to fix this issue?

Here is my HowTo for Beryl, which was the opponent for compiz before they joined.
Should work also. It is written for Nvidia:

http://forum.paldo.org/index.php?action=topic&topicnr=95

Otherwise look here:

ATI Cards

If you are using an ATI card, Compiz Fusion requires at least a Radeon 7000 (or M6). From the 7000 to the X1050, you can use AIGLX with the open source ati driver. All X1xxx series cards and the Xpress 200(M) must use the proprietary fglrx driver. Using driver version >= 8.3 (gentoo 8.4.XXX) is recommended as AIGLX is available as of 8.3. If you decide to use older fglrx drivers, you're stuck with Xgl.

http://blog.linuxoss.com/2007/11/update-running-compiz-fusion-using-ati-cards-and-aiglx/