apt-get install fglrx-driver has solved the problem.

I had overlooked a message at the start of bootup stating a radeon
nonfree display package might be required. (Its on the screen very
briefly - it took me three reboots to read it).  The notes on the
fglrx-driver actually suggest trying the newest free driver
xserver-xorg-video-radeon.  That came with the netinstall, was properly
installed and the system did come up with a working gnome desktop.

In fact, many users might never encounter the problem I found.  If all
the user wants is a working gnome desktop and has no use for or is
unaware of the tty terminals the netinstalled system is fine.

Tom


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