Please try Hardy alpha3 livecd if it works better.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
Status: Triaged => Incomplete
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Toshiba Satellite A200 running Gutsy shows strange colors after hibernation
https://bugs.launchpad.net/bugs/153159
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