This appears to be fixed with the latest daily.

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https://bugs.launchpad.net/bugs/1131028

Title:
  X fails to start black screen on install for ATI 690M

Status in “xserver-xorg-video-ati” package in Ubuntu:
  New

Bug description:
  Basically I was testing the Raring Daily Build on a AMD laptop with
  the 690G  - http://en.wikipedia.org/wiki/AMD_690_chipset_series video
  card.

  And it shows the Ubuntu splash screen but fails to load the actual
  lightdm or X windows. It appears that lightdm crashes from the logs
  and when I manually try to startx it says no screens available.

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