I'm running a Jaunty on that machine, and I don't see that issue. I've been playing with the configuration, and ran the radeonhd driver for a while, so that doesn't really say anything about how a newly installed system will work though.
I can confirm that the radeon Xorg driver works. It complains that the kernel doesn't support DRI on my card though, so I don't get accelerated video etc. -- [HD 3650] cannot start gnome X in intrepid (gray screen with horizontal thin flashing black lines) https://bugs.launchpad.net/bugs/272406 You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs