II've had the same error message after I upgraded from Kubuntu 10.04 to 10.10 
(with updates) yesterday. My PC has two Radeon cards (RV350 and RV370).
After many hours trying bring my system to live I've found that in my case the 
cause of problem was:
Load "v4l"
option in "Module" section of this file but unfortunately I don't see it in 
yours xorg.conf file.
Commenting this line fixed KDM (and Xorg) start.

-- 
Xorg assert failure: X: ../../../include/privates.h:122: dixGetPrivateAddr: 
Assertion `key->initialized' failed.
https://bugs.launchpad.net/bugs/625321
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