The original bug has been fixed in feisty, so I'll close this one. Paddy, your bug is #93509.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
Status: New => Fix Released
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xorg hangs on boot (feisty)
https://bugs.launchpad.net/bugs/82875
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