This works for me on HP Compaq nc6400 (radeon mobility x1300) with a
vanilla ubuntu 12.10 install:

1. edit grub command line to add 'nomodeset' and boot.

2. Then add 'nomodeset' in GRUB2's kernel command line (using
GRUB_CMDLINE_LINUX in /etc/default/grub) and run 'sudo update-grub'

3. Add the following to /etc/rc.d/rc.local:
modprobe -r radeon
modprobe -r drm
modprobe radeon modeset=1

4. Remove ~/.Xauthority

5. Reboot

And the problem is solved.

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https://bugs.launchpad.net/bugs/1029790

Title:
  Can't boot without nomodeset option-kernel 3.5.X.X/3.6.X.X ATI M52
  [Mobility Radeon X1300]

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