I have the same set up with the same symptoms, however there is a workaround - Bob, when you enable dual monitors log out and back in again and it should be ok, you will need to add a logout button to the panel away from the garbled mess:)
This works but if enabling desktop effects under appearance, the display gets messed up as described above and a log out and back in again somehow reverts it back to "no effects" -- You received this bug notification because you are a member of Ubuntu-X, which is subscribed to xserver-xorg-video-ati in Ubuntu. https://bugs.launchpad.net/bugs/706890 Title: dual monitors garbled display on 10.10 with Radeon X600 _______________________________________________ Mailing list: https://launchpad.net/~ubuntu-x-swat Post to : ubuntu-x-swat@lists.launchpad.net Unsubscribe : https://launchpad.net/~ubuntu-x-swat More help : https://help.launchpad.net/ListHelp