please try booting jaunty alpha2 livecd.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Triaged => Incomplete
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X fails to start on Radeon HD 2400 Mobility (Ubuntu 8.10 RC)
https://bugs.launchpad.net/bugs/289026
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