I confirm this on 10.04. I have KM400 card:
01:00.0 VGA compatible controller: VIA Technologies, Inc. VT8378 [S3 UniChrome] 
Integrated Video (rev 01).
Ubuntu starts in low graphics mode with error just as in first post. When i 
press 'Cancel' screen turns black and monitor says "No signal". I can't get to 
console to edit xorg.conf, because 10.04 doesn't have 'safe graphics mode' and 
it can't boot normally in single mode.

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[KM400][8.10] Wrong xorg.conf file for VIA KM400 graphic chipset
https://bugs.launchpad.net/bugs/293326
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