I was able to reproduce the same X error when starting the 7.10 x86_64 Live CD 
on an Acer Extensa 4420-5874 AMD X2 TK-55, ATI X1250
I was able to correct it just as above by installing fglrx in the live 
environment.

Let me know if you need anymore info

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Cannot install Gutsy Beta on Samsung R60+
https://bugs.launchpad.net/bugs/149957
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