I looked up the ATI All In Wonder Radion, it has 32 MB of memory. I also looked up the memory chips on the board and verified that it actually has 4 8MB memory ICs on it. The mode Ubuntu tries to use when nomodeset is used is 2304x1440. This is a bit under 10 MB at 24 bit color, so it is not insufficient memory that is causing display problems even if it is using 32 bit color. The display works when the resolution is dropped to 2048x1280, but I know of no way to change the login screen resolution.
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