I found that bug 231081 describes the same problem in the ATI IGP 340M
video card.  Apparently, the IGP 340M is nearly identical to the
Mobility U1 (also known as the IGP 320M).  The solution to bug 231081
was to update xserver-xorg-video-ati to 6.8.192.  I couldn't find that
specific release, but I found that Intrepid currently has version 6.9.0.
I downloaded and installed the relevant .debs, and the situation has
improved.

It's not working perfectly, but here's what I can do to get the external 
monitor to clone the LCD:
1. Plug in the external monitor.  (Nothing happens.)
2. Open the Screen Resolution tool (under System | Preferences).  It tells me 
I'm currently cloning the screen at 1024x768 and 60 Hz.
3. Change the resolution to 800x600; hit Apply.  The laptop LCD resizes.  
Sometimes the external monitor gets a signal at this point.
4. Chose "Use Previous Settings" from the Accept Changes dialog box.  The 
laptop screen resizes and the external monitor usually has the signal by now.  
If not, goto 3.

Making and canceling other changes (e.g., cloning and rotation), or even
accepting and then reverting them, can also get a signal to the external
monitor, though not as reliably.  Once I get the external monitor on, I
can turn off the LCD and use the external monitor by itself.  I have not
been able to get an extended desktop working.  Curiously, I have to do
all of this through the Screen Resolution tool.  Using xrandr on the
command line shuts off the external monitor.

I've changed the package to xserver-xorg-video-ati, since that's what
the fix updated.  Should this bug be marked a duplicate of 231081?  The
problem was the same and the hardware was nearly identical, but the fix
doesn't seem to have worked quite as well in this case.

** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: None => xserver-xorg-video-ati

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open source ati driver in hardy can't do external monitor on laptop
https://bugs.launchpad.net/bugs/222905
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