I believe I had a similar problem (not sure if is really the same, I will report a separate bug which can possibly later be duped to this one after things have become more clear).
What I have currently done is to revert back to the latest version of xserver-xorg-video-ati from feisty which still worked well for me and did not have a number of other serious problems. -- ATI Radeon X600 dual head with Gutsy https://bugs.launchpad.net/bugs/172347 You received this bug notification because you are a member of Ubuntu Bugs, which is the bug contact for Ubuntu. -- ubuntu-bugs mailing list [email protected] https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
