Thanks Alex.  Does this mean that Natty grub load sequence needs to be
sorted out?

I'm not very experienced with linux, and I haven't had the time to play
with the grub sequence.  I did notice that /etc/grub/grub.cfg calls
things like gfxterm, which presumably is some sort of X related process?
Maybe that is causing X to be loaded first.

Wonder if anyone from the Ubuntu team can comment?

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https://bugs.launchpad.net/bugs/757467

Title:
  Radeon 7000VE (rv100) fatal error during GPU init

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