i have the same problem, as well as wishing to use dual monitors (i have on 
previous distributions of Ubuntu)
lspci:
a...@andy-desktop:~$ lspci
00:00.0 Host bridge: Silicon Integrated Systems [SiS] 760/M760 Host (rev 02)
00:01.0 PCI bridge: Silicon Integrated Systems [SiS] SG86C202
00:02.0 ISA bridge: Silicon Integrated Systems [SiS] SiS964 [MuTIOL Media IO] 
(rev 36)
00:02.5 IDE interface: Silicon Integrated Systems [SiS] 5513 [IDE] (rev 01)
00:02.7 Multimedia audio controller: Silicon Integrated Systems [SiS] AC'97 
Sound Controller (rev a0)
00:03.0 USB Controller: Silicon Integrated Systems [SiS] USB 1.1 Controller 
(rev 0f)
00:03.1 USB Controller: Silicon Integrated Systems [SiS] USB 1.1 Controller 
(rev 0f)
00:03.2 USB Controller: Silicon Integrated Systems [SiS] USB 1.1 Controller 
(rev 0f)
00:03.3 USB Controller: Silicon Integrated Systems [SiS] USB 2.0 Controller
00:04.0 Ethernet controller: Silicon Integrated Systems [SiS] SiS900 PCI Fast 
Ethernet (rev 90)
00:08.0 VGA compatible controller: ATI Technologies Inc Radeon RV100 QY [Radeon 
7000/VE]
00:0b.0 FireWire (IEEE 1394): VIA Technologies, Inc. VT6306 Fire II IEEE 1394 
OHCI Link Layer Controller (rev 80)
00:18.0 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] 
HyperTransport Technology Configuration
00:18.1 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] Address 
Map
00:18.2 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] DRAM 
Controller
00:18.3 Host bridge: Advanced Micro Devices [AMD] K8 [Athlon64/Opteron] 
Miscellaneous Control
01:00.0 VGA compatible controller: Silicon Integrated Systems [SiS] 661/741/760 
PCI/AGP or 662/761Gx PCIE VGA Display Adapter
xorg.0.log:

X.Org X Server 1.6.4
Release Date: 2009-9-27
X Protocol Version 11, Revision 0
Build Operating System: Linux 2.6.24-23-server i686 Ubuntu
Current Operating System: Linux andy-desktop 2.6.31-20-386 #58-Ubuntu SMP Fri 
Mar 12 07:29:24 UTC 2010 i686
Kernel command line: root=UUID=573c58e4-2c62-428e-b73d-1f016b5e0032 ro quiet 
splash 
Build Date: 14 November 2009  05:48:26PM
xorg-server 2:1.6.4-2ubuntu4.1 (buildd@) 
        Before reporting problems, check http://wiki.x.org
        to make sure that you have the latest version.
Markers: (--) probed, (**) from config file, (==) default setting,
        (++) from command line, (!!) notice, (II) informational,
        (WW) warning, (EE) error, (NI) not implemented, (??) unknown.
(==) Log file: "/var/log/Xorg.0.log", Time: Wed Apr  7 15:08:36 2010
(==) Using config file: "/etc/X11/xorg.conf"
(==) ServerLayout "Default Layout"
(**) |-->Screen "Default Screen" (0)
(**) |   |-->Monitor "HP vs17"
(**) |   |-->Device "Intel Corporation 82865G Integrated Graphics Controller"
(==) Automatically adding devices
(==) Automatically enabling devices
(WW) The directory "/usr/share/X11/fonts/cyrillic" does not exist.
        Entry deleted from font path.
(WW) The directory "/usr/share/fonts/X11/cyrillic" does not exist.
        Entry deleted from font path.
(**) FontPath set to:
        /usr/share/X11/fonts/misc,
        /usr/share/X11/fonts/100dpi/:unscaled,
        /usr/share/X11/fonts/75dpi/:unscaled,
        /usr/share/X11/fonts/Type1,
        /usr/share/X11/fonts/100dpi,
        /usr/share/X11/fonts/75dpi,
        /var/lib/defoma/x-ttcidfont-conf.d/dirs/TrueType,
        /usr/share/fonts/X11/misc,
        /usr/share/fonts/X11/100dpi/:unscaled,
        /usr/share/fonts/X11/75dpi/:unscaled,
        /usr/share/fonts/X11/Type1,
        /usr/share/fonts/X11/100dpi,
        /usr/share/fonts/X11/75dpi,
        /var/lib/defoma/x-ttcidfont-conf.d/dirs/TrueType,
        built-ins
(==) ModulePath set to "/usr/lib/xorg/modules"
(II) Cannot locate a core pointer device.
(II) Cannot locate a core keyboard device.
(II) The server relies on HAL to provide the list of input devices.
        If no devices become available, reconfigure HAL or disable 
AllowEmptyInput.
(II) Loader magic: 0x3bc0
(II) Module ABI versions:
        X.Org ANSI C Emulation: 0.4
        X.Org Video Driver: 5.0
        X.Org XInput driver : 4.0
        X.Org Server Extension : 2.0
(II) Loader running on linux
(--) using VT number 7

(--) PCI:*(0:0:8:0) 1002:5159:1002:000b ATI Technologies Inc Radeon RV100 QY 
[Radeon 7000/VE] rev 0, Mem @ 0xd8000000/134217728, 0xe5100000/65536, I/O @ 
0x0000dc00/256, BIOS @ 0x????????/131072
(--) PCI: (0:1:0:0) 1039:6330:103c:2a06 Silicon Integrated Systems [SiS] 
661/741/760 PCI/AGP or 662/761Gx PCIE VGA Display Adapter rev 0, Mem @ 
0xd0000000/134217728, 0xe5000000/131072, I/O @ 0x0000c000/128
(II) Open ACPI successful (/var/run/acpid.socket)
(II) System resource ranges:
        [0] -1  0       0xffffffff - 0xffffffff (0x1) MX[B]
        [1] -1  0       0x000f0000 - 0x000fffff (0x10000) MX[B]
        [2] -1  0       0x000c0000 - 0x000effff (0x30000) MX[B]
        [3] -1  0       0x00000000 - 0x0009ffff (0xa0000) MX[B]
        [4] -1  0       0xffffffff - 0xffffffff (0x1) MX[B]
        [5] -1  0       0x000f0000 - 0x000fffff (0x10000) MX[B]
        [6] -1  0       0x000c0000 - 0x000effff (0x30000) MX[B]
        [7] -1  0       0x00000000 - 0x0009ffff (0xa0000) MX[B]
        [8] -1  0       0xffffffff - 0xffffffff (0x1) MX[B]
        [9] -1  0       0x000f0000 - 0x000fffff (0x10000) MX[B]
        [10] -1 0       0x000c0000 - 0x000effff (0x30000) MX[B]
        [11] -1 0       0x00000000 - 0x0009ffff (0xa0000) MX[B]
        [12] -1 0       0xffffffff - 0xffffffff (0x1) MX[B]
        [13] -1 0       0x000f0000 - 0x000fffff (0x10000) MX[B]
        [14] -1 0       0x000c0000 - 0x000effff (0x30000) MX[B]
        [15] -1 0       0x00000000 - 0x0009ffff (0xa0000) MX[B]
        [16] -1 0       0xffffffff - 0xffffffff (0x1) MX[B]
        [17] -1 0       0x000f0000 - 0x000fffff (0x10000) MX[B]
        [18] -1 0       0x000c0000 - 0x000effff (0x30000) MX[B]
        [19] -1 0       0x00000000 - 0x0009ffff (0xa0000) MX[B]
        [20] -1 0       0x0000ffff - 0x0000ffff (0x1) IX[B]
        [21] -1 0       0x00000000 - 0x00000000 (0x1) IX[B]
        [22] -1 0       0x0000ffff - 0x0000ffff (0x1) IX[B]
        [23] -1 0       0x00000000 - 0x00000000 (0x1) IX[B]
        [24] -1 0       0x0000ffff - 0x0000ffff (0x1) IX[B]
        [25] -1 0       0x00000000 - 0x00000000 (0x1) IX[B]
        [26] -1 0       0x0000ffff - 0x0000ffff (0x1) IX[B]
        [27] -1 0       0x00000000 - 0x00000000 (0x1) IX[B]
        [28] -1 0       0x0000ffff - 0x0000ffff (0x1) IX[B]
        [29] -1 0       0x00000000 - 0x00000000 (0x1) IX[B]
(II) "extmod" will be loaded. This was enabled by default and also specified in 
the config file.
(II) "dbe" will be loaded by default.
(II) "glx" will be loaded. This was enabled by default and also specified in 
the config file.
(II) "record" will be loaded by default.
(II) "dri" will be loaded. This was enabled by default and also specified in 
the config file.
(II) "dri2" will be loaded by default.
(II) LoadModule: "i2c"
(II) Module "i2c" already built-in
(II) LoadModule: "ddc"
(II) Module "ddc" already built-in
(II) LoadModule: "dri"
(II) Loading /usr/lib/xorg/modules/extensions//libdri.so
(II) Module dri: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.0.0
        ABI class: X.Org Server Extension, version 2.0
(II) Loading extension XFree86-DRI
(II) LoadModule: "extmod"
(II) Loading /usr/lib/xorg/modules/extensions//libextmod.so
(II) Module extmod: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.0.0
        Module class: X.Org Server Extension
        ABI class: X.Org Server Extension, version 2.0
(II) Loading extension MIT-SCREEN-SAVER
(II) Loading extension XFree86-VidModeExtension
(II) Loading extension XFree86-DGA
(II) Loading extension DPMS
(II) Loading extension XVideo
(II) Loading extension XVideo-MotionCompensation
(II) Loading extension X-Resource
(II) LoadModule: "freetype"
(WW) Warning, couldn't open module freetype
(II) UnloadModule: "freetype"
(EE) Failed to load module "freetype" (module does not exist, 0)
(II) LoadModule: "glx"
(II) Loading /usr/lib/xorg/modules/extensions//libglx.so
(II) Module glx: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.0.0
        ABI class: X.Org Server Extension, version 2.0
(==) AIGLX enabled
(II) Loading extension GLX
(II) LoadModule: "int10"
(II) Loading /usr/lib/xorg/modules//libint10.so
(II) Module int10: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.0.0
        ABI class: X.Org Video Driver, version 5.0
(II) LoadModule: "vbe"
(II) Loading /usr/lib/xorg/modules//libvbe.so
(II) Module vbe: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.1.0
        ABI class: X.Org Video Driver, version 5.0
(II) LoadModule: "dbe"
(II) Loading /usr/lib/xorg/modules/extensions//libdbe.so
(II) Module dbe: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.0.0
        Module class: X.Org Server Extension
        ABI class: X.Org Server Extension, version 2.0
(II) Loading extension DOUBLE-BUFFER
(II) LoadModule: "record"
(II) Loading /usr/lib/xorg/modules/extensions//librecord.so
(II) Module record: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.13.0
        Module class: X.Org Server Extension
        ABI class: X.Org Server Extension, version 2.0
(II) Loading extension RECORD
(II) LoadModule: "dri2"
(II) Loading /usr/lib/xorg/modules/extensions//libdri2.so
(II) Module dri2: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 1.1.0
        ABI class: X.Org Server Extension, version 2.0
(II) Loading extension DRI2
(II) LoadModule: "intel"
(II) Loading /usr/lib/xorg/modules/drivers//intel_drv.so
(II) Module intel: vendor="X.Org Foundation"
        compiled for 1.6.4, module version = 2.9.0
        Module class: X.Org Video Driver
        ABI class: X.Org Video Driver, version 5.0
(II) intel: Driver for Intel Integrated Graphics Chipsets: i810,
        i810-dc100, i810e, i815, i830M, 845G, 852GM/855GM, 865G, 915G,
        E7221 (i915), 915GM, 945G, 945GM, 945GME, Pineview GM, Pineview G,
        965G, G35, 965Q, 946GZ, 965GM, 965GME/GLE, G33, Q35, Q33, GM45,
        4 Series, G45/G43, Q45/Q43, G41, B43, Clarkdale, Arrandale
(II) Primary Device is: PCI 0...@00:08:0
(EE) No devices detected.

Fatal server error:
no screens found

Please consult the The X.Org Foundation support 
         at http://wiki.x.org
 for help. 
Please also check the log file at "/var/log/Xorg.0.log" for additional 
information.

 ddxSigGiveUp: Closing log


any help would be greatly appreciated as i have been using karmic this way for 
a long while now. and i would like to "experience the full potential" with my 
64 bit and "brand new" computer
thanks,
andy

-- 
ubuntu 9.1 running in low graphics mode
https://bugs.launchpad.net/bugs/501338
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