Same bug on a Lenovo R60 with ATI X1400.
With single head the screen starts flickering after a while like Gary B. described above. I added modeset=0 and the flickering takes longer, but it is still there. Seems to be related to the machines temperature. If the cpu is busy for a while the flickering gets worse.
If I use dual head the shivering is always present like in the youtube video. modeset didn't change anything.
Today I installed mainline kernel 2.6.34 and the dual head shivering was fixed. But the flickering with single head is still there.
Furthermore if I reboot the machine it hangs with some red garbage on the top of the screen.
Let me know if there is more information needed.