running
dpkg-reconfigure xserver-xorg
solves the problem.
however some strange things happened when doing this:
the autodetection of my graphics card failed, i had to manually select the 
flgrx driver.
Also the detection of the monitor failed; the screen went black and i had to 
reboot.
When manually entering the correct options it works and i can now start x.
i hope this is solved for the final release..

the performance in X seems much slower then it was in feisty however,
there is a lot of flickering..

-- 
X not starting after upgrade to 7.10 RC (ATI X1400)
https://bugs.launchpad.net/bugs/151884
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