Openchrome is the preferred driver for you hardware. Please try jaunty
alpha2 livecd (or newer). Does it work then?
** Changed in: xserver-xorg-video-openchrome (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-openchrome
Status: New => Incomplete
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X server freezes
https://bugs.launchpad.net/bugs/291609
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