Got the same problem. The workaround described above solved the problem.
Output of lspci:
01:00.0 VGA compatible controller [0300]: ATI Technologies Inc Radeon Mobility
M6 LY [1002:4c59]
Subsystem: IBM Device [1014:052f]
Flags: bus master, stepping, fast Back2Back, 66MHz, medium devsel,
latency 66, IRQ 11
Memory at e0000000 (32-bit, prefetchable) [size=128M]
I/O ports at 2000 [size=256]
Memory at c0100000 (32-bit, non-prefetchable) [size=64K]
[virtual] Expansion ROM at c0120000 [disabled] [size=128K]
Capabilities: <access denied>
Kernel modules: radeon, radeonfb
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Boot fails with Out of Range Pointer error
https://bugs.launchpad.net/bugs/424503
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