I can confirm that Marcin's workaround works for me.

$ lspci | grep VGA
01:00.0 VGA compatible controller: ATI Technologies Inc Radeon Mobility X700 
(PCIE)

$ uname -a
Linux abel 2.6.31-20-generic #58-Ubuntu SMP Fri Mar 12 05:23:09 UTC 2010 i686 
GNU/Linux

-- 
Radeon module loaded before agpgart
https://bugs.launchpad.net/bugs/468413
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