I think some kernel or video driver update has fixed it in the process
since now I cannot reproduce the bug anymore. Consider the bug fixed as
of Monday September 1, 2008. Sorry for the delay in my response.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Incomplete => Fix Released
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after upgrade to gutsy, image distorsioned on screen with resolutions lower
than 1024x768
https://bugs.launchpad.net/bugs/145403
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