The problem is that the "failsafe" mode kicks in and restarts the server
using the "vesa" driver. Your log is from the vesa driver. Can you
please attach Xorg.0.log.old which hopefully will be from the ati/radeon
driver?
You can also try the "xorg.conf before reboot" but remove these two lines:
HorizSync 28-64
VertRefresh 43-60
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upgrade feisty gutsy ati radeon 9200 problem
https://bugs.launchpad.net/bugs/164972
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