I have the same problem on my laptop until now :( I have an Acer Aspire
2026 with an ATI mobility radeon 9700.

I must use the vesa driver but the display is not correct : 1024x768 and my 
screen is 1280x800...
If I use the ATI drivers the screen resolution is correct but the computer 
freezes just after GDM. I must use the "failsafe seesion" to log in.

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X freezes in drmCommandWrite() when Compiz is enabled on ATI Radeon Mobility 
9600
https://bugs.launchpad.net/bugs/195051
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