Sorry, i forgot to add that i'm running Ubuntu 11.10. I've tried 11.04,
10.10 & even 10.04 but the same thing happened - graphical corruption,
even when booting from Live CD. I've checked the ISO's & they're all
good. I've used them to install Ubuntu in Intel-based laptops &
experienced no problem at all. It's just sad that i can't install Ubuntu
on my own system.

Processor                 1.2GHz AMD Athlon 64 L110
Memory            2GB, 667MHz DDR2
Hard drive                250GB 5,400rpm
Chipset                   AMD RS690E
Graphics                  ATI Radeon X1270

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https://bugs.launchpad.net/bugs/556782

Title:
  [rs690m] Graphics corruption with ati x1200

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