KMS (Kernel mode setiting) broken in ATI Radeon 7500 GPU, image scrolls vertically in a loop

[Saku Ytti]

Soon after 'fsck' display mode is changed and picture starts to scroll so that when it displays at bottom of the screen, it reappears in top of the screen, issue persists from console to GDM to xorg.
I can fix this issue with 'options radeon modeset=0' without that, I can reproduce it 100% of times. I've updated lucid 30min
ago.

ProblemType: Bug
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.21.
AplayDevices:
 **** List of PLAYBACK Hardware Devices ****
 card 0: I82801CAICH3 [Intel 82801CA-ICH3], device 0: Intel ICH [Intel 82801CA-ICH3]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: ytti 1294 F.... pulseaudio
CRDA: Error: [Errno 2] No such file or directory
Card0.Amixer.info:
 Card hw:0 'I82801CAICH3'/'Intel 82801CA-ICH3 with CS4205 at irq 5'
   Mixer name : 'Cirrus Logic CS4205 rev 3'
   Components : 'AC97a:4352595b'
   Controls : 42
   Simple ctrls : 27
Date: Mon Dec 21 21:36:11 2009
DistroRelease: Ubuntu 10.04
EcryptfsInUse: Yes
HibernationDevice: RESUME=UUID=6e206986-85fa-4962-aa37-8181fcbc9e77
InstallationMedia: Ubuntu 10.04 "Lucid Lynx" - Alpha i386 (20091209)
Lsusb: Bus 001 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
MachineType: Dell Computer Corporation Latitude C640
Package: linux-image-2.6.32-9-generic 2.6.32-9.13
ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.32-9-generic root=UUID=3d2c64c5-c4ca-43dc-9b05-0fa9056bd1d2 ro quiet splash
ProcEnviron:
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcVersionSignature: Ubuntu 2.6.32-9.13-generic
Regression: Yes
RelatedPackageVersions: linux-firmware 1.28
Reproducible: Yes
RfKill:
 0: phy0: Wireless LAN
  Soft blocked: no
  Hard blocked: no
SourcePackage: linux
Tags: lucid needs-upstream-testing regression-potential
TestedUpstream: No
Uname: Linux 2.6.32-9-generic i686
dmi.bios.date: 05/15/2003
dmi.bios.vendor: Dell Computer Corporation
dmi.bios.version: A09
dmi.board.name: 04P240
dmi.board.vendor: Dell Computer Corporation
dmi.chassis.type: 8
dmi.chassis.vendor: Dell Computer Corporation
dmi.modalias: dmi:bvnDellComputerCorporation:bvrA09:bd05/15/2003:svnDellComputerCorporation:pnLatitudeC640:pvr:rvnDellComputerCorporation:rn04P240:rvr:cvnDellComputerCorporation:ct8:cvr:
dmi.product.name: Latitude C640
dmi.sys.vendor: Dell Computer Corporation