Experiencing this issue and then some.

Attempted install of Ubuntu 10.04.1 64-bit via ubuntu-minimal ISO image on 
CD-R. 
Selected "SSH Server" and "Ubuntu Desktop"

Hardware:
AMD Phenom II 710 (x3)
8GB DDR3
GIGABYTE GA-MA770T-UD3 (AMD 770 Chipset)
2x XFX HD5770 -> 2x Monitors connected via DVI
80GB SSD (/dev/sda, /)
2TB WD HDD (/dev/sdb, /home)

When I attempt this, the system locks up as soon as it starts
downloading libc6.  Network interface does not respond to any attempt to
ping or connect.  Getting dmesg is impossible.  HDD light is dead.  The
lights are on but no one's home.

When I attempt to use the Ubuntu Desktop image (Lucid, 64-bit), the
Ubuntu logo comes up, then black screen.  Can not ping computer or
connect from another machine.  Keyboard freezes so cannot get dmesg.
HDD light flickers about every second.  Sadly, rebooting is my only
option and that means I lose those logs it is so vigorously writing.

The ONLY way I've been able to get my setup to work is to:
1) Install Ubuntu server 10.04 64-bit.
2) apt-get update && apt-get -y upgrade
3) apt-get install ubuntu-desktop (do NOT reboot)
4) install fglrx from repo (installing ATI drivers from AMD/ATI breaks 
everything at this stage)
5) Shutdown and remove 1 5770 (attempting the other installs with only 1 
monitor and one 5770 has no affect)
6) Boot system (hooray we can log in!) but have that stupid "unsupported 
hardware" watermark there
7) remove fgrlx and install drivers from ATI
8) Shutdown, reinstall 2nd 5770, reconnect second monitor.
9) Screen is a bit screwy and the mouse randomly teleports, screen has dead 
areas where mouse disappears; Still use catalyst to configure monitors;
        a.) tar /etc/ati to somewhere safe (I use ~/ati_config.tar)
        b.) remove ATI drivers
        c.) install fgrlx
       d.) untar archived /etc/ati back to /etc/ati (simply extracting the 
contents from the ATI driver with fgrlx doens't fix any of the previous 
issues...i'm guessing the ATI drivers don't cleanly install and leave something 
useful behind that fgrlx dosn't overwrite)
A) Reboot
B) Do a complete backup, wipe the sweat off your brow, and enjoy Ubuntu.

I guess you could say I'm insanely dedicated to AMD and Ubuntu, and this
is a very painful relationship.

-- 
[lucid] ATI hd5xxx cards wrongly doing kms?
https://bugs.launchpad.net/bugs/560306
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