I can confirm this bug also following a recent network upgrade from Feisty to Gutsy. Moreover,  the auto adjust button on  my Polyview V293 LCD adjusts nicely then is immediately over ridden.
my lspci :
lspci
00:00.0 Host bridge: ATI Technologies Inc Radeon 9100 IGP Host Bridge (rev 02)
00:01.0 PCI bridge: ATI Technologies Inc Radeon 9100 IGP AGP Bridge
00:13.0 USB Controller: ATI Technologies Inc OHCI USB Controller #1 (rev 01)
00:13.1 USB Controller: ATI Technologies Inc OHCI USB Controller #2 (rev 01)
00:13.2 USB Controller: ATI Technologies Inc EHCI USB Controller (rev 01)
00:14.0 SMBus: ATI Technologies Inc ATI SMBus (rev 17)
00:14.1 IDE interface: ATI Technologies Inc ATI Dual Channel Bus Master PCI IDE Controller
00:14.3 ISA bridge: ATI Technologies Inc Unknown device 434c
00:14.4 PCI bridge: ATI Technologies Inc Unknown device 4342
00:14.5 Multimedia audio controller: ATI Technologies Inc IXP150 AC'97 Audio Controller
01:05.0 VGA compatible controller: ATI Technologies Inc Radeon 9100 IGP
02:05.0 RAID bus controller: Silicon Image, Inc. SiI 3512 [SATALink/SATARaid] Serial ATA Controller (rev 01)
02:06.0 Ethernet controller: Broadcom Corporation BCM4401 100Base-T (rev 01)
02:0b.0 FireWire (IEEE 1394): VIA Technologies, Inc. IEEE 1394 Host Controller (rev 80)

my  xorg.conf:
# xorg.conf (xorg X Window System server configuration file)
#
# This file was generated by dexconf, the Debian X Configuration tool, using
# values from the debconf database.
#
# Edit this file with caution, and see the xorg.conf manual page.
# (Type "man xorg.conf" at the shell prompt.)
#
# This file is automatically updated on xserver-xorg package upgrades *only*
# if it has not been modified since the last upgrade of the xserver-xorg
# package.
#
# If you have edited this file but would like it to be automatically updated
# again, run the following command:
#   sudo dpkg-reconfigure -phigh xserver-xorg

Section "Files"
EndSection

Section "InputDevice"
	Identifier	"Generic Keyboard"
	Driver		"kbd"
	Option		"CoreKeyboard"
	Option		"XkbRules"	"xorg"
	Option		"XkbModel"	"pc104"
	Option		"XkbLayout"	"us"
EndSection

Section "InputDevice"
	Identifier	"Configured Mouse"
	Driver		"mouse"
	Option		"CorePointer"
	Option		"Device"		"/dev/input/mice"
	Option		"Protocol"		"ImPS/2"
	Option		"ZAxisMapping"		"4 5"
	Option		"Emulate3Buttons"	"true"
EndSection

Section "InputDevice"
	Driver		"wacom"
	Identifier	"stylus"
	Option		"Device"	"/dev/input/wacom"
	Option		"Type"		"stylus"
	Option		"ForceDevice"	"ISDV4"		# Tablet PC ONLY
EndSection

Section "InputDevice"
	Driver		"wacom"
	Identifier	"eraser"
	Option		"Device"	"/dev/input/wacom"
	Option		"Type"		"eraser"
	Option		"ForceDevice"	"ISDV4"		# Tablet PC ONLY
EndSection

Section "InputDevice"
	Driver		"wacom"
	Identifier	"cursor"
	Option		"Device"	"/dev/input/wacom"
	Option		"Type"		"cursor"
	Option		"ForceDevice"	"ISDV4"		# Tablet PC ONLY
EndSection

Section "Device"
	Identifier	"ATI Technologies Inc Radeon 9100 IGP"
	Driver		"ati"
	BusID		"PCI:1:5:0"
EndSection

Section "Monitor"
	Identifier	"CMC 19 AD"
	Option		"DPMS"
	HorizSync	30-82
	VertRefresh	56-76
EndSection

Section "Screen"
	Identifier	"Default Screen"
	Device		"ATI Technologies Inc Radeon 9100 IGP"
	Monitor		"CMC 19 AD"
	DefaultDepth	24
	SubSection "Display"
		Modes		"1280x1024" "1152x864" "1024x768" "800x600" "640x480"
	EndSubSection
EndSection

Section "ServerLayout"
	Identifier	"Default Layout"
	Screen		"Default Screen"
	InputDevice	"Generic Keyboard"
	InputDevice	"Configured Mouse"

# Uncomment if you have a wacom tablet
#	InputDevice     "stylus"	"SendCoreEvents"
#	InputDevice     "cursor"	"SendCoreEvents"
#	InputDevice     "eraser"	"SendCoreEvents"
EndSection