Sorry, I didn't have time to investigate further (except that adding the
lines you wrote didn't help). fglrx worked fine so I didn't have to work
on this issue.
Until today I upgraded to jaunty where fglrx is obiously broken. Bad
news: After I removed every trace of fglrx from my system, both radeon
and radeonhd are broken as well. radeonhd displayed a distorted screen,
radeon nothing at all.
I'll attach the Xorg.logs, both with and without the config lines you
posted.
** Changed in: xorg-server (Ubuntu)
Status: Invalid => Confirmed
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[RS690] Wrong resolution and Nokia 800 Pro+
https://bugs.launchpad.net/bugs/298094
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