@Jerone Young:

I installed from tribe 5, not the RC, but it has all updates, so should
be the same. Unfortunately it is non-trivial for me to try the new RC
disc live, since the X31 has no CD rom drive - it requires the manual
creation of a bootable usb key - but like I said, I don't think that
reinstalling vs. upgrading should make any difference.

Can you boot from the livecd again and report the error message you
receive, to see if it is the same as this one?

Thanks,
-Gabriel

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[gutsy] Regression - "Desktop effects could not be enabled" on ATI Mobility 
Radeon
https://bugs.launchpad.net/bugs/144077
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