This bug is fixed with Kubuntu Tribe5. I get proper resolution on Live CD as
well after installation.
Thanks for solving this!
** Changed in: xserver-xorg-video-ati (Ubuntu)
Importance: Undecided => Medium
Status: Confirmed => Fix Released
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regression: blank screen on hp nw8240 (ATI X700) after xorg 7.2 update
https://bugs.launchpad.net/bugs/90571
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