I have this issue too.

System:

Ubuntu 10.04 Beta 2, 64-bit
CPU: Intel i7 860
MOBO: Gigabyte GA-P55A-UD3
GPU: ATI Radeon HD 5770 (1GB)
MEM: 4GB DDR3 (PC-10600/1333MHz)
HD: 2TB SATA2 (1TB x2)

Hope some of that information is helpful.

-- 
[lucid] ATI hd5xxx cards wrongly doing kms?
https://bugs.launchpad.net/bugs/560306
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