Today's ppa still has the same problem:

Linux version 2.6.35-999-generic (r...@zinc) (gcc version 4.2.3 (Ubuntu
4.2.3-2ubuntu7)) #201007281008 SMP Wed Jul 28 11:18:42 UTC 2010

radeon.modeset=0 and I'm able to boot O.K.

Without the external monitor it will boot with KMS on.

Jerry

-- 
Maverick ati xorg freeze booting with external monitor
https://bugs.launchpad.net/bugs/598322
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