Have you had a chance to upgrade to lucid?  We've brought in a newer
-ati version which recognizes a broader range of cards and includes
innumerable bug fixes.  Beta-2 is coming up, if you could either upgrade
or boot a livecd, then let us know how that testing turns out.

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Incomplete => New

** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: New => Incomplete

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[HD 3470] Installation Problem
https://bugs.launchpad.net/bugs/254908
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