OK, after reading the KMS docs, I managed to get the screen working
(adding video=VGA-1:e, it seems that KMS is redirecting output to DVI
instead of VGA). Now, I managed to capture panic info. Adding
radeon.agpmode=-1 or radeon.modeset=0 I don't get KP, but system simply
freezes (blinking cursor, still cannot enter shell in runlevel 1).

** Attachment added: "panic.JPG"
   
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/774303/+attachment/2102654/+files/panic.JPG

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https://bugs.launchpad.net/bugs/774303

Title:
  Boot Kernel Panic with ATI AGP card

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