No apologies, you found the card, you found that its not in pci.ids and
you found that xorg-video-radeonhd exists.

Thats the good news.

The bad news is, I tried them, they are installed and still don't work.
Thats not experimental as I cannot even start with any experiments.

You can use the drivers from AMD
(http://ati.amd.com/support/drivers/linux64/linux64-radeonhd.html) but
they lack power management (the machine freezes on suspend to RAM and
hibernate), don't work with compiz and are extremely sluggish.

I use ATI's drivers for working but would like to have the open source
version that is maintained in Ubuntu.

Now that we have that settled, lets reiterate what we know:

If there is a problem with the video driver X (or is it Gnome) reverts
to a default setting that offers maximum screen resolution by using a
vesa driver. I suspect that the driver reports an error on load that
triggers the fallback.

So, how can I help you find the error message.

Here is the Xorg.0.log from the ATI proprietory driver. Maybe you can
make use of this and find some differences.


** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/10079878/Xorg.0.log

-- 
[M76] Gnome desktop resolution incorrect
https://bugs.launchpad.net/bugs/152179
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