I don't know if this helps. But, I downgraded to r713 using
https://launchpad.net/ubuntu/+source/xserver-xorg-video-
openchrome/1:0.2.903+svn713-1ubuntu1/+build/866816/+files/xserver-xorg-
video-openchrome_0.2.903+svn713-1ubuntu1_i386.deb

I rebooted for good measure and encountered the same issue :(

** Attachment added: "Xorg.0.log after downgrading to svn713"
   http://launchpadlibrarian.net/34935592/Xorg.0.log.2.svn713.txt

-- 
[KM400]Openchrome driver not working after Karmic upgrade
https://bugs.launchpad.net/bugs/467967
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