I figured out what was causing the problem,

In the past, I had edited my grub configuration `/etc/default/grub` for
smoother plymouth experience, it was like this:

    GRUB_CMDLINE_LINUX_DEFAULT="quiet splash acpi_os_name=Linux acpi_osi=Linux 
video=uvesafb:mode_option=1024x786-24,mtrr=3,scroll=ywrap"
    GRUB_CMDLINE_LINUX="quiet vga=771"

I forgot where exactly I found this; it was somewhere on the internet.

I edited the file again and made it just:

    GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
    GRUB_CMDLINE_LINUX=""

And now it boots just fine.

I don't know if you will still consider this a bug/regression. But,
since I took these options somewhere from the internet, chances are,
there are quite a few people who also have these lines in their grub
configs, and they will likely experience the same problem I had.

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati in Ubuntu.
https://bugs.launchpad.net/bugs/859934

Title:
  screen corruption and system freeze during boot

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-ati/+bug/859934/+subscriptions

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