My problem with the generic ati driver after upgrading to Gutsy is the
screen going absolutely haywire from login onwards. So I can't see a
thing, or should I say I can see plenty but of course can't make sense
of a display rapidly moving in diagonal lines. I have had to revert to
the old vesa driver too (and yeah, I have the same card and have never
been able to get anything but a basic driver to work, but at least ati
used to work!). Here are some links to posts by me and others with ATI
vs Gutsy woes:

http://ubuntuforums.org/showthread.php?t=582357

http://ubuntuforums.org/showthread.php?p=3600411#post3600411

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[gutsy] ati driver not working in gutsy
https://bugs.launchpad.net/bugs/154528
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