I have the same problem with a sapphire HD2400 Pro 512Mb ATI Radeon graphics 
card in unbuntu / gdm. I had set auto-login to a user before installing the 
graphics card. Its the first AGP I could buy new at present.
I don't understand Matthews comment but I'm about to uninstall to test and turn 
off auto-login.

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xorg screen blank in karmic with ati driver
https://bugs.launchpad.net/bugs/449631
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