Sort of sounds like a bad modeline. If this is the case, one thing to
try is to change resolutions to something different. Another thing to
try would be to test it with an external monitor.
Please attach your /var/log/Xorg.0.log and the output of lspci -vvnn.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: New => Incomplete
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Heavy display corruption with Intrepid during installation
https://bugs.launchpad.net/bugs/272853
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