I can confirm this issue with Lucid Beta 2 on a Dell Inspiron laptop with the 
following video:
01:00.0 VGA compatible controller: ATI Technologies Inc Radeon Mobility X1400

The built-in 1680*1050 display is fine, the external VGA monitor with
the same resolution is wavy and unusable. Since Dapper I have not had a
problem with the external VGA display. Shall I post some logs?

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