We have recently pulled some PLL updates in for testing which may help
with this issue. Could you test the kernels at the URL below and report
back here. Kernels are here:
http://people.canonical.com/~apw/lp538377-lucid/
Thanks!
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[Lucid] Noise-Corruption on screen with ATI mobility 3400
https://bugs.launchpad.net/bugs/546827
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