Confirming that the 738 releases fixes the 'No valid modes found' error
for me.

I had exactly the same problem, I was dropped to a text-only login
screen after a successful boot. I have followed the guide at
https://help.ubuntu.com/community/OpenChrome to build and install the
738 release. Rebooted the machine and immediately got a graphical login
screen.

Thanks for the quick fix.

-- 
[regression] Jaunty and Intrepid screen xserver won't start
https://bugs.launchpad.net/bugs/367442
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