Since you had to add MonitorLayout option, I think this bug is duplicate of bug 
22985.
Recent ati driver update helps in detecting monitor layout and it works on some 
systems that did not work before.
Can you re-test this with Edgy Release Candidate?

** Changed in: xorg (Ubuntu)
       Status: Unconfirmed => Needs Info

** Changed in: xorg (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati

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desktop-cd ubuntu 6.10 beta boots but 'blank screen' only
https://launchpad.net/bugs/64502

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