As a workaround I added nomodeset to the kernel parameters.

As the bug came up with Lucid, I give just a short sketch how to solve
the problem with gub2. (standard in Lucid)

Edit /etc/default/grub
add the parameter nomodeset to GRUB_CMDLINE_LINUX_DEFAULT. This line is in my 
configuration now:
  GRUB_CMDLINE_LINUX_DEFAULT="splash nomodeset"

Then run sudo update-grub in a TTerminal

Just to try if it works for your case ye you can edit the entry in Grub once 
before booting (see instructions at the bottom of the Grub boot menu at boot 
time) the line to edit is similar to
 linux /boot/vmlinuz-2.6.32-22-generic root=UUID=....... ro splash nomodeset

write nomodeset to the end of this line (as in the line above)

-- 
VGA screen sometimes is croped and has dithering DVI Screen is always normal 
ATI x800
https://bugs.launchpad.net/bugs/579028
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