I can also confirm this. My Xorg.log is similar to others:
...
ATI Radeon X850 PRO (R480) (AGP), ATI Radeon X850 SE (R480) (AGP),
ATI Radeon X850 XT (R480) (AGP), ATI Radeon X850 XT PE (R480) (AGP)
(II) ATI: Candidate "Device" section "ATI Technologies, Inc. RV350 NP
[Mobility Radeon 9600/9700 M10/M11]".
(EE) No devices detected.
Fatal server error:
no screens found
Laptop is a Thinkpad t42.
0000:01:00.0 VGA compatible controller: ATI Technologies Inc RV350
[Mobility Radeon 9600 M10]
I downgraded from -0ubuntu10.3 to -0ubuntu10 and it worked again.
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xorg-server 1:1.0.2-0ubuntu10.3 breaks X: "no screens found"
https://launchpad.net/bugs/57153
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