I'm having this problem on my nx9420 too. It was OK with kernel 
2.6.32-14-generic and it's flickering massively on kernel 2.6.32-16-generic
My current workaround is to boot the older kernel...

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[RV530] video problem flicker unreadable hp compaq nx9420 ati radeon
https://bugs.launchpad.net/bugs/537640
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