I've just uploaded 6.11.0 to Jaunty which I believe should have this
fix. Please re-test and if the issue occurs still, reopen this bug.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: In Progress => Fix Released
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[HD 3870] Blank screen when GDM starts
https://bugs.launchpad.net/bugs/272877
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