codeslinger, this bug report is being closed due to your last comment
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
ati/+bug/768729/comments/3 regarding this being fixed with an update.
For future reference you can manage the status of your own bugs by
clicking on the current status in the yellow line and then choosing a
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Please submit any future bugs you may find.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Incomplete => Invalid

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https://bugs.launchpad.net/bugs/768729

Title:
  no video without nomodeset

Status in “xserver-xorg-video-ati” package in Ubuntu:
  Invalid

Bug description:
  Binary package hint: xorg

  video works perfect on ubuntu 10.10
  but on natty, all of the startup screens -- walking dots or line by line with 
no splash, work fine.  but then when the transistion is made to the desktop and 
X takes over,  the screen stays frozen on what it last displayed, the desktop 
never comes up.   

  However the startup sound plays and ctrl-alt-f1  etc, gets me to a valid 
shell.
  If I use f6 options to enable "nomodeset"  then I can get a desktop display.

  
  This happens when running the LiveCD  Natty Daily  2011-04-20  Desktop 64bit

  lspci
  00:00.0 Host bridge: Advanced Micro Devices [AMD] RS780 Host Bridge Alternate
  00:01.0 PCI bridge: Advanced Micro Devices [AMD] RS780 PCI to PCI bridge (int 
gfx)
  00:02.0 PCI bridge: Advanced Micro Devices [AMD] RS780 PCI to PCI bridge (ext 
gfx port 0)
  00:05.0 PCI bridge: Advanced Micro Devices [AMD] RS780 PCI to PCI bridge 
(PCIE port 1)
  00:06.0 PCI bridge: Advanced Micro Devices [AMD] RS780 PCI to PCI bridge 
(PCIE port 2)
  00:11.0 SATA controller: ATI Technologies Inc SB700/SB800 SATA Controller 
[AHCI mode]
  00:12.0 USB Controller: ATI Technologies Inc SB700/SB800 USB OHCI0 Controller
  00:12.2 USB Controller: ATI Technologies Inc SB700/SB800 USB EHCI Controller
  00:13.0 USB Controller: ATI Technologies Inc SB700/SB800 USB OHCI0 Controller
  00:13.2 USB Controller: ATI Technologies Inc SB700/SB800 USB EHCI Controller
  00:14.0 SMBus: ATI Technologies Inc SBx00 SMBus Controller (rev 42)
  00:14.2 Audio device: ATI Technologies Inc SBx00 Azalia (Intel HDA) (rev 40)
  00:14.3 ISA bridge: ATI Technologies Inc SB700/SB800 LPC host controller (rev 
40)
  00:14.4 PCI bridge: ATI Technologies Inc SBx00 PCI to PCI Bridge (rev 40)
  00:14.5 USB Controller: ATI Technologies Inc SB700/SB800 USB OHCI2 Controller
  00:16.0 USB Controller: ATI Technologies Inc SB700/SB800 USB OHCI0 Controller
  00:16.2 USB Controller: ATI Technologies Inc SB700/SB800 USB EHCI Controller
  00:18.0 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor 
HyperTransport Configuration
  00:18.1 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor 
Address Map
  00:18.2 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor DRAM 
Controller
  00:18.3 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor 
Miscellaneous Control
  00:18.4 Host bridge: Advanced Micro Devices [AMD] Family 10h Processor Link 
Control
  01:05.0 VGA compatible controller: ATI Technologies Inc M880G [Mobility 
Radeon HD 4200]
  02:00.0 VGA compatible controller: ATI Technologies Inc Device 68e4 (rev ff)
  02:00.1 Audio device: ATI Technologies Inc Manhattan HDMI Audio [Mobility 
Radeon HD 5000 Series] (rev ff)
  03:00.0 Network controller: RaLink RT3090 Wireless 802.11n 1T/1R PCIe
  04:00.0 Ethernet controller: Realtek Semiconductor Co., Ltd. RTL8111/8168B 
PCI Express Gigabit Ethernet controller (rev 03)

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