adding "options radeon modeset=0" to /etc/modprobe.d/radeon-kms.conf
solved the problem for me. My external monitor is no more wavy. ATI HD2400 
adapter, VGA with kernel 2.6.32-21-generic x86_64

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[RV530] Video problem: External monitor wavy, unreadable. ati radeon [Needs pll 
quirk]
https://bugs.launchpad.net/bugs/537640
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