This is fixed in the latest round of updates--starting up Xorg.conf with  VESA 
actually gets me a working X on my Mobility Radeon X1400.
(I tested it because I severely borked my fglrx setup and had to wipe the whole 
lot of it out)

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desktop cd fails to start gdm with hp nc6400 (widescreen, ati-based laptop)
https://bugs.launchpad.net/bugs/103945
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