I have the same problem on my inspiron 8000 running Ubuntu 9.10.
There is no xorg.conf file so I don't know if it's possible to fix?
However, removing the xserver-xorg-video-ati and restarting gdm is a better 
than nothing workarround as it falls back to the vesa driver.

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[M4] Dell Inspiron 8000 shows split display on LiveCD
https://bugs.launchpad.net/bugs/247771
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