This looks like Bug #89853
There's a workaround described at
http://www.mikesplanet.net/2007/04/installing-ubuntu-704-ati-x-cards/
Does that work for you? If not, please provide the following information to
help us identify it:
/var/log/Xorg.0,log
/var/log/dmesg
/etc/X11/xorg.conf
output of running 'lspci -vv'
** Changed in: restricted-manager (Ubuntu)
Assignee: (unassigned) => Dan O'Huiginn
Status: Unconfirmed => Needs Info
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Disabling Ati drivers in restricted manager leaves broken X
https://bugs.launchpad.net/bugs/107856
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