I found workaround for this, just modify Screen section in xorg.conf
It should look similar to this:
Section "Screen"
Identifier "Default Screen"
Monitor "Configured Monitor"
DefaultDepth 24
SubSection "Display"
Depth 24
Modes "1280x800"
EndSubSection
EndSection
If acceleration for your card (like my PN800) is broken, put this line into
Device section
Option "NoAccel" "true"
Desktop is very slow, but not messy and works.
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Wrong resolution on Hardy Alpha 3
https://bugs.launchpad.net/bugs/182778
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