I am having the same issue with a HP NW8440 freshly installed. The waves
appears on the laptop's lcd and resolution changes causes everything to
get garbled - re-changing doesn't fix.

Applying the "options radeon modeset=0" fixes the waving on laptop
screen, but resolution changes still cause problems. Boot screen is
faulty as well.

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[RV530] Video problem: External monitor wavy, unreadable. ati radeon [Needs pll 
quirk]
https://bugs.launchpad.net/bugs/537640
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