I can confirm this on my LG P1 Express with an ATI X1400.

Alpha 5 won't work:

"(EE) VESA(0): No valid modes
(EE) Screen(s) found, but none have a usable configuration.

Fatal server error:
no screens found.
giving up."

Daily built CD works just fine. Quite an improvement for all the ATI-
suffering users. Yes!!! Thank you very much! :)

-- 
[ATI X1300] Could not generate /etc/X11/xorg.conf.failsafe
https://bugs.launchpad.net/bugs/174434
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