Hello, thanks for helping to make Ubuntu better.
Your log file looks interesting:
01:05.0 VGA compatible controller [0300]: ATI Technologies Inc RS690 [Radeon 
X1200 Series] [1002:791e]
02:00.0 VGA compatible controller [0300]: ATI Technologies Inc Mobility Radeon 
HD 3450 [1002:95c5]
Seems you have two graphic cards, maybe that confuses the driver? What kind of 
computer do you have?
Do the graphics work with Intrepid? What happens if you try to use the driver 
"radeonhd"
Thanks!

-- 
HD3450 configuration fails on reboot in jaunty
https://bugs.launchpad.net/bugs/312924
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