Closing. A success story with the same laptop at http://www.matthewjmiller.net/howtos/dual-boot-linux-and-windows/ So please try eg. Ubuntu 6.10, and reopen if the problem persists.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Needs Info => Fix Released
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Dapper installation shows only blank screen
https://launchpad.net/bugs/35737
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