Thanks @Parmentier,

Uninstalled xserver-xorg-video-sis
Downgraded xorg as proposed by Parmentier (2 comments above)
Installed xserver-xorg-video-sis

SiS76x chip working fine now.
Good work-around, Thanks!

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https://bugs.launchpad.net/bugs/1034812

Title:
  SiS video driver circles round login screen

Status in “xserver-xorg-video-sis” package in Ubuntu:
  Confirmed

Bug description:
  Login screen just flicks on screen then screen goes blank before login
  screen flickers back on and of for ever more.  Can be a problem
  getting to a TTY as well, this seems to be a matter of hitting
  Alt+Ctrl+Fn at just the right time.

  Hardware:  VGA compatible controller:  Silicon Integrated Systems
  [SiS] 65x/M650/740 PCI/AGP VGA Display Adapter (prog-if 00 [VGA
  controller])

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