I think this is the same in my case

I have an ATI Mobility  Radeon HD 2400

 * 8.04 worked fine out "of the box" even with the live CD
 * 8.10 alpha got worked if I added (Driver "radeonhd") manually during install
 * since 8.10 beta I am not able to start X. The driver radeonhd (which worked 
very well) can't be loaded, radeon does not work, neither does vesa

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[intrepid] Xorg fails to start xserver-xorg-video-radeon (CD_INVALID_OPCODE)
https://bugs.launchpad.net/bugs/274234
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