that's because the driver only supports randr 1.2, and scale needs 1.3.
Try 9.10 alpha3 livecd.
** Visibility changed to: Public
** Package changed: x11-xserver-utils (Ubuntu) => xserver-xorg-video-ati
(Ubuntu)
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: Confirmed => Incomplete
--
xrandr --scale XxY crashed with SIGSEGV in __libc_start_main()
https://bugs.launchpad.net/bugs/354715
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