I've got the same model laptop, and I've been trying to solve this problem for 
over a year.
I've tried the fix, and it does in fact work. With up-to-date xorg ati drivers, 
I get great results.

I had previously filed a bug about this issue on the kernel bugzilla:
http://bugzilla.kernel.org/show_bug.cgi?id=8815

Thanks to the Ubuntu developers, and I hope that this fix gets pushed
upstream!

-- 
ati-agp fails to load Radeon 9000 IGP (device id: 7831)
https://bugs.launchpad.net/bugs/178634
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