Manoj,

plymouth is still a no go using radeon.modeset=0 or 1. Removing plymouth
allows me to login with gdm.  I'll report back as soon as I have
problems or in a couple of days if no problems (ie, for the
KMS/EXA/compiz combination).

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[lucid] desktop runs out of video memory on ATI Radeon Mobility 7500
https://bugs.launchpad.net/bugs/507148
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