afaik, the bug causing this problem is found and a patch made it into newer ATI 
radeon driver
http://bugs.freedesktop.org/show_bug.cgi?id=12626#c70

-- 
interlacing broken in gutsy on radeon/ati open source driver
https://bugs.launchpad.net/bugs/144322
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which is the registrant for xserver-xorg-driver-ati.

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