There is an issue with the graphical user interface "Screens and
Graphics" so it doesn't work very well with the new Gutsy ati driver. As
you could see, it worked well with the old driver.

I would however recommend you to install the newest Gutsy driver again, and 
make a new, clean xorg.conf by running: sudo dpkg-reconfigure -phigh 
xserver-xorg
Then add the "PCI" option as before. Please attach the new xorg.conf and the 
Xorg.0.log from running with this.

You can also try the newest test driver from
https://wiki.ubuntu.com/XorgOnTheEdge

-- 
upgrade feisty gutsy ati radeon 9200 problem
https://bugs.launchpad.net/bugs/164972
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