If the xserver drops to failsafe mode you are lacking some package. Make
sure you have the correct restricted-modules package installed. Not a
bug.
** Changed in: linux-restricted-modules-2.6.22 (Ubuntu)
Sourcepackagename: xorg => linux-restricted-modules-2.6.22
Status: Confirmed => Invalid
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xorg.conf gets overwritten every boot
https://bugs.launchpad.net/bugs/178826
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