I have just verified that is still the case.
I've also checked on the latest version of Ubuntu 12.04 Alpha 2 - Precise 
Pangolin

I have not heard that anyone is working on this.

** Summary changed:

- ATI graphics card fails when RAM increased to 4Gb on Natty Beta
+ Precise : AMD graphics card fails when RAM increased to 4Gb

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https://bugs.launchpad.net/bugs/756540

Title:
  Precise : AMD graphics card fails when RAM increased to 4Gb

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