I dont think this issue is related only to ATI driver ; many with different 
drivers have posted this issue in the installation/upgrade forum.
My Dell inspiron 5160 has the XGI VOLARI XP5 driver and i was hitting the black 
screen using LiveCD and after upgrading from dapper. After upgrade from dapper, 
i shifted to trident driverr and added modeline to the xorg.conf. Attaching the 
initial (bad) xorg files and the modified ones.

** Attachment added: "Volari XP5 black screen issue - xorg files"
   http://librarian.launchpad.net/4967258/XP5_black_screen.tar.gz

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[edgy][regression][rv280] black screen and console freeze when X starts
https://launchpad.net/bugs/67487

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