*** This bug is a duplicate of bug 89853 ***
    https://bugs.launchpad.net/bugs/89853

Fixed th problem by intsalling xorg-driver-fglrx and reconfiguring by
using dpkg-reconfigure xserver-xorg and choosing fglrx as the driver.
Rebooted the machine and it started working.

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[ati] X does not start when booting from 7.04 beta CD
https://bugs.launchpad.net/bugs/104993
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