I may have the same problem.
After installing ubuntu 10.10 on a machine with a agp ati radeon 3850 card, and 
then installing the proprietary ati driver, and then configuring my second 
monitor (which also happens to be rotated 90 degrees right), all works fine. 
Until a reboot that is, which simply causes the system to crash before arriving 
at the login screen. Booting in rescue mode and then doing startx results in 
the same hangup. Only starting in the safe-x mode (I'm not at the system, so 
excuse me for using incorrect boot-item names) results in getting to the login 
screen.

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Xorg crashes when rotate second display ATI 5850
https://bugs.launchpad.net/bugs/661026
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