I think this is problem is not related to #28925, changing xorg.conf to
use the "radeon" driver instead of "ati" would not have helped
otherwise. This seems to be related to not properly detecting the gfx
chipset in the first place. The Xorg.0.log suggests that something goes
wrong when detecting the gfx chipset. It might be useful to checkout
bugs.freedesktop.org in order to find out whether upstream knows about
this or not.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Needs Info => Confirmed
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X in 6.10 ISO Cd installer doesn't work for ATI card
https://launchpad.net/bugs/68433
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