Can the blank (but not frozen) screen be due to the resolution that is picked?
(II) RADEON(0): Output VGA-0 using initial mode 1440x900

All similar symptoms reported has been AGP trouble. Your case is also
failing with PCI, so I don't really know. Or maybe you have two issues,
one with the monitor/blank screen, and another with AGP freezing up. Any
chance you can try another monitor?

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Freeze with ati driver during boot on 8.04
https://bugs.launchpad.net/bugs/214105
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