I gots gutsy running on an ATI Radeon Mobility 7500 and no black
screen... though, it does go black for a second or two during bootup.

However, everything I move something on the display my CPU usage
skyrockets! The xorg.conf says the driver is "ati" not fglrx.

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ATI Driver Gets Black Screen on Radeon 7500 Mobile (Regression)
https://bugs.launchpad.net/bugs/132716
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