Public bug reported:

Starting the daily livecd of Gutsy, X doesn't boot up correctly, it
freezes up. I switched to console and killed gdm. After it I edited
manually the xorg.conf by adding these lines:

Section "Module"
    Disable "Dri"
EndSection

and restart the previously killed Gdm. In this way it booted up
correctly.

** Affects: xserver-xorg-driver-ati (Ubuntu)
     Importance: Undecided
         Status: New

-- 
On current Gutsy LiveCD X won't start on Ati x200m
https://bugs.launchpad.net/bugs/138899
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