This may be a duplicate of Bug #93271. I reported the bug against the kernel as I can successfully load the ATI driver (although still with errors) and start X by using the 'video=ofonly' kernel parameter.
-- xorg fails with ati driver with feisty on Apple ppc (post herd5 update) https://launchpad.net/bugs/93509 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs