Since the Edgy driver didn't help, please upgrade to the Feisty driver
again (you can use Update Manager).

Mike, if you can find an Edgy live CD to try, it would be interesting to
know if it's a regression. w4ett tweaks would not help since 1) memory
detection works fine 2) FBDev usually makes things worse (it's off by
default) 3) You have a PCI card, so it can not run AGP .

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ATI Radeon 9250 PCI black screen and console freeze with DRI
https://bugs.launchpad.net/bugs/114520
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