Can you try to disable the TV output in xorg.conf?
http://lists.freedesktop.org/archives/xorg/2007-August/027657.html
Please also attach Xorg.0.log
There's now a "-tv2" version out in my ppa, but I don't expect anything
to have changed for your issue. Alex said he might do some LVDS work in
the weekend, in which case there'll be a -tv3 soon.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Status: New => Incomplete
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[gutsy][9700] analog output on DVI-I broken
https://bugs.launchpad.net/bugs/145198
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