Colin, does this still happen with latest Oneiric? I couldn't figure out whether this was on Ati or Intel from the bug (sorry if I missed something). If the latter, it may well be a dupe of #745996 as Jean- Baptiste mentioned. In our tests, this has usually happened on Intel due a custom ~/.drirc file (though ISO testing suggests that this would be a fresh install?) or a /etc/drirc file. Removing it fixes the issue.
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