This looks to be the same issue of
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-
ati/+bug/645377 and the latest round of updates seem to of fixed it I
didn't notice any xorg updates in the process but something looks like
it has fixed the issue.

-- 
when xorg starts, screen is corrupted
https://bugs.launchpad.net/bugs/647488
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