The same problem here, with the following Radeon device:
VGA compatible controller: ATI Technologies Inc Radeon HD 2400 XT (prog-if 00
[VGA controller])
Subsystem: Rioworks Device 2073
Flags: bus master, fast devsel, latency 0, IRQ 47
Memory at f0000000 (32-bit, prefetchable) [size=128M]
I/O ports at 2000 [size=256]
Memory at fa000000 (32-bit, non-prefetchable) [size=64K]
[virtual] Expansion ROM at fa020000 [disabled] [size=128K]
Capabilities: <access denied>
Kernel driver in use: fglrx_pci
Kernel modules: fglrx, radeon
See the attached Xorg.log for more details.
Xorg works fine when booted with an old kernel, tested with
2.6.38-8-generic
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https://bugs.launchpad.net/bugs/782297
Title:
X Window not starting with Natty on Notebook with Mobility Radeon HD
2400
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