Still no joy here. This is straight from Feisty's liveCD.

syslog:

Mar 30 13:46:20 ubuntu kernel: [  134.924090] agpgart: Found an AGP 3.1 compliant device at 0000:00:00.0.
Mar 30 13:46:20 ubuntu kernel: [  134.924226] agpgart: Putting AGP V3 device at 0000:00:00.0 into 4x mode
Mar 30 13:46:20 ubuntu kernel: [  134.924355] agpgart: Putting AGP V3 device at 0000:01:00.0 into 4x mode
Mar 30 13:46:20 ubuntu kernel: [  134.925908] [drm:radeon_cp_init] *ERROR* radeon_cp_init called without lock held
Mar 30 13:46:20 ubuntu kernel: [  134.926083] [drm:drm_unlock] *ERROR* Process 7278 using kernel context 0

Xorg.log
(II) RADEON(0): [drm] DRM interface version 1.3
(II) RADEON(0): [drm] created "radeon" driver at busid "pci:0000:01:00.0"
(II) RADEON(0): [drm] added 8192 byte SAREA at 0xf0b74000
(II) RADEON(0): [drm] mapped SAREA 0xf0b74000 to 0xb7c6c000
(II) RADEON(0): [drm] framebuffer handle = 0xd8000000
(II) RADEON(0): [drm] added 1 reserved context for kernel
(II) RADEON(0): [agp] Mode 0x1f004e09 [AGP 0x1039/0x0760; Card 0x1002/0x5964]
(II) RADEON(0): [agp] 8192 kB allocated with handle 0x00000001
(EE) RADEON(0): [agp] Could not bind
(EE) RADEON(0): [agp] AGP failed to initialize. Disabling the DRI.
(II) RADEON(0): [agp] You may want to make sure the agpgart kernel module
is loaded before the radeon kernel module.
(**) RADEON(0): RADEONDRICloseScreen
(II) RADEON(0): [drm] removed 1 reserved context for kernel
(II) RADEON(0): [drm] unmapping 8192 bytes of SAREA 0xf0b74000 at 0xb7c6c000
(**) RADEON(0): RADEONInitMemoryMap() :
(**) RADEON(0):   mem_size         : 0x08000000
(**) RADEON(0):   MC_FB_LOCATION   : 0xdfffd800
(**) RADEON(0):   MC_AGP_LOCATION  : 0xffffffc0
(**) RADEON(0): RADEONModeInit()
1280x1024     135.00  1280 1296 1440 1688  1024 1025 1028 1066 (24,32) +H +V
1280x1024     135.00  1280 1296 1440 1688  1024 1025 1028 1066 (24,32) +H +V
(**) RADEON(0): Pitch = 10485920 bytes (virtualX = 1280, displayWidth = 1280)
(**) RADEON(0): dc=13500, of=27000, fd=120, pd=2
(**) RADEON(0): RADEONInit returns 0x81f5cf8
(**) RADEON(0): RADEONRestoreMode()
(**) RADEON(0): RADEONRestoreMode(0x81f5cf8)
(**) RADEON(0): RADEONRestoreMemMapRegisters() :
(**) RADEON(0):   MC_FB_LOCATION   : 0xdfffd800
(**) RADEON(0):   MC_AGP_LOCATION  : 0xffffffc0
(**) RADEON(0):   Map Changed ! Applying ...
(**) RADEON(0):   Map applied, resetting engine ...
(**) RADEON(0): Updating display base addresses...
(**) RADEON(0): Memory map updated.
(**) RADEON(0): Programming CRTC1, offset: 0x00000000
(**) RADEON(0): Wrote: 0x0000000c 0x00010078 0x00000000 (0x0000a700)
(**) RADEON(0): Wrote: rd=12, fd=120, pd=1
(**) RADEON(0): GRPH_BUFFER_CNTL from 20077c7c to 20165c5c
(**) RADEON(0): RADEONSaveScreen(0)
(II) RADEON(0): Depth moves disabled by default
(**) RADEON(0): Setting up initial surfaces
(**) RADEON(0): Initializing fb layer
(**) RADEON(0): Setting up accel memmap
(II) RADEON(0): Memory manager initialized to (0,0) (1280,8191)
(II) RADEON(0): Reserved area from (0,1024) to (1280,1026)
(II) RADEON(0): Largest offscreen area available: 1280 x 7165
(**) RADEON(0): Initializing backing store
(==) RADEON(0): Backing store disabled
(WW) RADEON(0): Direct rendering disabled
(**) RADEON(0): Setting up final surfaces

messages:
Mar 30 13:46:08 ubuntu kernel: [  108.273616] Linux agpgart interface v0.101 (c) Dave Jones
Mar 30 13:46:08 ubuntu kernel: [  108.332063] agpgart: Detected SiS 760 chipset
Mar 30 13:46:08 ubuntu kernel: [  108.332384] agpgart: AGP aperture is 4M @ 0xd0000000
...
Mar 30 13:46:19 ubuntu kernel: [  133.165771] [drm] Initialized drm 1.1.0 20060810
Mar 30 13:46:19 ubuntu kernel: [  133.213693] ACPI: PCI Interrupt 0000:01:00.0[A] -> GSI 16 (level, low) -> IRQ 23
Mar 30 13:46:19 ubuntu kernel: [  133.216027] [drm] Initialized radeon 1.25.0 20060524 on minor 0
Mar 30 13:46:19 ubuntu kernel: [  133.321137] lp0: using parport0 (interrupt-driven).
Mar 30 13:46:19 ubuntu kernel: [  133.432400] ppdev: user-space parallel port driver
Mar 30 13:46:20 ubuntu kernel: [  134.924090] agpgart: Found an AGP 3.1 compliant device at 0000:00:00.0.
Mar 30 13:46:20 ubuntu kernel: [  134.924226] agpgart: Putting AGP V3 device at 0000:00:00.0 into 4x mode
Mar 30 13:46:20 ubuntu kernel: [  134.924355] agpgart: Putting AGP V3 device at 0000:01:00.0 into 4x mode