It's fixed for me in Jaunty.
The radeon driver works correctly again. So far, support is quite limited (no 
3D, glxinfo/glxgears crashing) but it works. I'm using the default xorg as 
generated by dpkg-reconfigure xserver-xorg.

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[RV 6xx HD 3870] Driver fails to load on 2 Sep daily
https://bugs.launchpad.net/bugs/264462
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