Please try with 7.10beta to see if it works now.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Importance: Undecided => Low
Status: New => Incomplete
** Changed in: xserver-xorg-video-ati (Ubuntu)
Importance: Low => Medium
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1920x1200 resolution warped on ATI / Dell 2407 monitor
https://bugs.launchpad.net/bugs/97044
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