I have this bug, reported as duplicate bug #557814.

I have found that the screen shivering is still present in:
$ uname -a
Linux s-desktop 2.6.34-020634rc6-generic #020634rc6 SMP Fri Apr 30 09:08:46 UTC 
2010 x86_64 GNU/Linux

with an r350 -ati driver (more info is at the linked bug report).

-- 
[RV515] [LENOVO T60] external screen display shows "shivering", horizontal 
refresh offset
https://bugs.launchpad.net/bugs/541501
You received this bug notification because you are a member of Ubuntu-X,
which is the registrant for xserver-xorg-driver-ati.

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