Using days update of Jaunty Alpha 3, I commented out Driver, BusID & Option HPD "off from /etc/X11/xorg.conf, then rebooted.
Radeon driver loaded and 2nd monitor not seen

mur@ubuntu2:~$ xrandr
Screen 0: minimum 320 x 200, current 1152 x 864, maximum 2704 x 1050
VGA-0 connected 1152x864+0+0 (normal left inverted right x axis y axis) 0mm x 0mm
   1152x864       75.0*+   75.0     70.0     60.0     60.0  
   1680x1050      60.0  
   1600x1024      60.2  
   1400x1050      60.0  
   1280x1024      60.0  
   1440x900       59.9  
   1280x960       60.0  
   1360x768       59.8  
   1024x768       85.0     75.0     70.1     60.0     59.9  
   832x624        74.6  
   800x600        85.1     72.2     75.0     60.3     56.2  
   640x480        85.0     72.8     75.0     59.9  
   720x400        85.0  
   640x400        85.1  
   640x350        85.1  
HDMI-0 disconnected (normal left inverted right x axis y axis)
DVI-0 disconnected (normal left inverted right x axis y axis)

Progress !!!
> 
> From: Bryce Harrington <email address hidden>
> Date: 2009/01/30 Fri PM 06:38:21 CST
> To: <email address hidden>
> Subject: [Bug 311748] Re: [HD3470 + HD3200] Dual cards prevents X from
> 	starting / black screen
> 
> Let's focus on the -ati aspect of this bug.
> 
> Actually I suspect this to be an xserver bug (maybe #139990).  It is
> also possible that with GEM/DRI2/etc. this will be resolved.  But
> certainly worth tracking for now.
> 
> ** Changed in: xserver-xorg-video-radeonhd (Ubuntu)
>        Status: Confirmed => Invalid
> 
> ** Changed in: xserver-xorg-video-ati (Ubuntu)
>        Status: Confirmed => Triaged
> 
> -- 
> [HD3470 + HD3200] Dual cards prevents X from starting / black screen
> https://bugs.launchpad.net/bugs/311748
> You received this bug notification because you are a direct subscriber
> of a duplicate bug.
> 
> Status in X.org XServer - ATI gfx chipset driver: Confirmed
> Status in ?xserver-xorg-video-ati? source package in Ubuntu: Triaged
> Status in ?xserver-xorg-video-radeonhd? source package in Ubuntu: Invalid
> 
> Bug description:
> The specs:
> Asus x56tr Notebook
> AMD TURION X2 64 
> ATI 3200 & ATI HD3470
> RAM 4GB
> 
> I can install Intrepid Ibex, but my graphics cards don't work in Intrepid.
> 
> Installing Ubuntu only works with the extra boot options acpi=off or MAXCPUS=1. Ubuntu Intrepid installed, but i couldn't get any GUI. The x-server tried to start but failed. I also cannot switch to terminal using crtl-alt F1, because X keeps trying. sometimes i get the errormessage: no screens found. I tried ati, radeon, vesa, radeonhd. I tried installing the official ati-drivers. Nothing worked, then after hours of mindbreaking i installed Hardy Heron, IT worked! Installed the restricted drivers and the screen looks nice. No sound though and no wireless.
> 
> How can i get Intrepid Ibex to work? I read somewhere that xorg 7.4 could be the problem or the 4GB of RAM. Don't know how to fix this though. Latest versions of Mandriva and OpenSuse also do not run from livecd or install and suse complains about the graphic card.
> [lspci]
> 00:00.0 Host bridge [0600]: Advanced Micro Devices [AMD] RS780 Host Bridge [1022:9600]
>     	Subsystem: ASUSTeK Computer Inc. Device [1043:11e7]
> 01:05.0 VGA compatible controller [0300]: ATI Technologies Inc RS780M/RS780MN [Radeon HD 3200 Graphics] [1002:9612]
>     	Subsystem: ASUSTeK Computer Inc. Device [1043:1062]
> 02:00.0 VGA compatible controller [0300]: ATI Technologies Inc Mobility Radeon HD 3400 Series [1002:95c4]
>     	Subsystem: ASUSTeK Computer Inc. Device [1043:1875]
> 
>