I will confirm this issue.  
I have the same problem with a Radeon 7500.  This occurs on the final hardy 
livecd.  The workaround for this is to add the "single" to the boot params and 
then drop to a root shell and change Xorg.conf to use the vesa driver.   I'll 
post my with kern.0.log, xorg.0.log, and xorg.conf.

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Open Source ATI Driver causes monitor to display "no signal" (8.04 ATI Radeon 
9000)
https://bugs.launchpad.net/bugs/225863
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