I've just tested the Kubuntu 8.10 Beta Live CD (i386) and there is no change. 
The monitor goes to sleep when the driver loads and only wakes up if I switch 
to vt1. If I switch back to vt7 the monitor goes blank again.
This happens in both normal and safe graphics mode. I checked the Xorg.0.log 
and the same driver loads in both modes.

I think this bug should be tagged Critical and be targeted for the final
release. It's a potential show stopper for a lot of people out there who
got a recent ATI card.

The solution would probably be to load the radeonhd for the R6xx/R7xx
cards by default.

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Radeon Driver fails to load on 2 Sep daily [ATI HD3870]
https://bugs.launchpad.net/bugs/264462
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