The patch that fixes this according to the upstream bug, is already
present in Karmic. According to the git changelogs, this patch caused a
regression (subsequently fixed with other changes) so is probably too
high of risk for backporting to Jaunty. However once a new official
-ati is released, if I have time I'll try adding it to the x-updates
ppa.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Confirmed => Fix Released
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[RV530] Screen "static noise" using high resolutions
https://bugs.launchpad.net/bugs/366651
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