Oh, it's using the vesa-driver, which does not support widescreen modes.
Wait until the ati-driver supports newer chips..
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
Importance: Undecided => Medium
Status: Incomplete => Confirmed
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iMac 24" 1920x1200 screen resolution not detected
https://bugs.launchpad.net/bugs/151549
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