I have got the same problem (Dell Inspiron 9100; ATI Radeon 9700). I would also 
like to urge you to do the following:
1)  Pull this update from the update server until fixed.
2)  Upgrade the status ty critical.

This is very bad publicity for Ubuntu.  Just imagine a corporate company
having rolled out Ubuntu on their workstations in stead of Windows and
suddenly Ubuntu's own upgrades break the clients!!

Attached please find my XOrg log file.

-- 
xorg-server 1:1.0.2-0ubuntu10.3 breaks X: "no screens found"
https://launchpad.net/bugs/57153

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