Same issues here. I have an ATI 4850 - for which support has not yet
been dropped as it is a new card. Was working perfectly in 8.10. The
upgrade to 9.04 resulted in graphical corruption on the screen and a
system hang when starting X. Removing the driver allows boot into non-
accelerated GUI. Selecting "system - administration - hardware drivers"
reinstalls the driver and breaks everything again. Even if this is an
ATI problem, the hardware driver application should check which card you
have against a database of supported cards and present the user with
information such as "Your card is not supported by the ATI drivers" and
then not proceed to break the system.

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fglrx breaks graphics in 9.04; system won't boot
https://bugs.launchpad.net/bugs/366529
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