Disabling KMS worked for me too.  Running Lucid on an Inspiron E1505
with an ATI Mobility x1300.

$ sudo su
# echo options radeon modeset=0 > /etc/modprobe.d/radeon-kms.conf

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