Comment 3 for bug 475466

The trouble starts here:
(II) RADEON(0): AGP card detected

which of course causes failure later:
(WW) RADEON(0): [agp] AGP not available
(EE) RADEON(0): [agp] AGP failed to initialize. Disabling the DRI.

so desktop effects won't work in the default configuration.

That you have to specify "PCI" is a workaround for this faulty detection. This is the first thing that should be fixed. It is really a PCIE card.

However when you specify PCI it corrects it to PCIE. Running with PCIE causes black screen. This is a second issue.

Please also run "apport-collect 475466" so we get all information attached.