the suggested fix worked for me as well so I changed it to confirmed.
Not sure if it should be changed to 'fix committed'.
** Changed in: xserver-xorg-video-r128 (Ubuntu)
Status: Incomplete => Confirmed
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[Xubuntu][Intrepid] wrong resolution with ATI Rage Mobility M3 AGP 2x (rev 02)
https://bugs.launchpad.net/bugs/284309
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