I had the same kind of bug with "01:00.0 VGA compatible controller: ATI
Technologies Inc Mobility Radeon HD 3450".

On a usb-created live Ubuntu 9.10, the graphical screen blinks. I let
the computer boot all night and in the morning it had booted. From the
dmesg and messages log, it finished blinking after more than an hour
(4467 seconds...).

I hereby attach Xorg.0.log and /var/log/messages.


** Attachment added: "/var/log/messages"
   http://launchpadlibrarian.net/32672311/messages

-- 
[rv620] Karmic Alpha 5 resets the GPU repeatedly during bootup, then freezes
https://bugs.launchpad.net/bugs/424712
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