Looking at the Xorg.0.log, this should be fixed in the latest daily CD images at http://cdimage.ubuntu.com/daily-live/ . Please test launching a daily live CD, and reopen if it's not fixed.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Needs Info => Fix Released
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Edgy Beta 1: Mobility X700 on Fujitsu-Siemens Amilo M1437G
https://launchpad.net/bugs/64226
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