I'm having a similar (?same) issue on an ASUS F8Sp laptop with ATI
Radeon HD 3650 running Intrepid Alpha 5 64 bit Live CD.  On starting the
GDM, I get a gray screen with intermittently flashing horizontal lines.
Everything seems to be working except the X, because I can hit Shift-
Alt-F1 and drop to a fully functional terminal.  I'm attaching the xorg
log file.  The xorg.conf file appears to be completely unconfigured (no
drivers or anything in it), although if I try 'X -configure' I get an
xorg.conf file that has the radeon driver in it, but it doesn't work
either (gray screen etc as above).

** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/17615692/Xorg.0.log

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Radeon Driver fails to load on 2 Sep daily [ATI HD3870]
https://bugs.launchpad.net/bugs/264462
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