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
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