Fixed with this line on /etc/default/grub:
GRUB_CMDLINE_LINUX_DEFAULT="nomodeset"
instead of the original
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
and rerun update-grub, in Oneiric Ocelot.
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https://bugs.launchpad.net/bugs/819443
Title:
X fails to start properly when using the open source radeon/ati driver
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