I can verify this bug on Feisty with an ATI Radeon 8500DV.  In addition,
it persisted when I moved to Gutsy (Beta and now release).

However, I do have something odd that somewhat differs with the
previously reported issues.  Approximately one in every two to three
boots, X will lock up upon boot with the same symptoms.  The other
times, X boots normally without issues.

Option "BusType" "PCI" fixed this issue.

I may have a related or unrelated issue where X.org takes up all of my
CPU power in Gutsy -- Bug #150863.  Disabling DRI fixes that separate
issue.  I didn't have this problem in Feisty.

-- 
DRI lockup with AGP on ati (mobility radeon rv350)
https://bugs.launchpad.net/bugs/141551
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