Running Feisty Beta from CD, I've got exactly the same problem, including the 
screen corruption, on an Asus M6Ne with an ATI Mobility Radeon 9700 (I think).
I'll attach my output of xresprobe, ddcprobe, and lspci.

** Attachment added: "Output of xresprobe, ddcprobe, and lspci"
   http://librarian.launchpad.net/6932007/xresprobe.txt

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Incorrect resolution on Medion MD 97300 with ATI Radeon Xpress 200M
https://launchpad.net/bugs/93078

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