If this is of any help, I believe, I am too suffering from this bug on a 
freshly installed beta-1 of Lucid.
The video card is reported as:
01:00.0 VGA compatible controller: ATI Technologies Inc Mobility Radeon X2300.

I noticed the static-like blinking horizontal ~6-12 pixels long
artifacts during installation. The static is noticeable even during
system bootup, even before the X is started. I cannot capture this
static while taking snapshots.

-- 
[rs690m] Graphics corruption with ati x1200
https://bugs.launchpad.net/bugs/556782
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