I have the same problem with fresh installation of Lucid and in my case it is 
caused probably by the DRI.
I have ATI Radeon X1950Pro AGP card and I'm using 'radeon' open source driver. 
When I turn off DRI in xorg.conf, everything is fine, but video playback is 
extremely slow, because I cant use Xv acceleration without DRI. When I turn DRI 
on, X server freezes on login screen. I also can't use KMS, because with KMS on 
I see only garbled stripes on screen. I tried several combinations in Xorg.conf 
and anytime I turned on DRI the Xserver freezed at startup. I tried stable 
xserver-xorg-video-ati package and also the latest PPA directly from GIT 
(currently 1:6.13.99+git20100903.2b98ec1f-0u). I spent almost two days with 
this annoying bug and I have functional Lucid, but I can't watch movies. This 
is very upleasable experience, because I finaly decided to move from Windows to 
Linux/Ubuntu and now I have to turn back. 
In attachment is my Xorg configuration and log file.

** Attachment added: "xorg.tar.gz"
   
https://bugs.launchpad.net/ubuntu/+source/xorg-server/+bug/567696/+attachment/1570457/+files/xorg.tar.gz

-- 
[Radeon] [Lucid] [mi] EQ overflowing. The server is probably stuck in an 
infinite loop
https://bugs.launchpad.net/bugs/567696
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