I have the same problem.

I have a laptop which I use in several locations where I have several different 
external monitors that I like to use alongside the laptop's panel.  Last year I 
installed Breezy and added these lines to the Section "Device" for "ATI 
Technologies, Inc. Radeon Mobility M7 LW [Radeon Mobility 7500]":

        Option          "AGPMode"               "4"
        Option          "AGPFastWrite"          "True"
        Option          "EnablePageFlip"        "True"
        Option          "MergedFB"              "True"
        Option          "CRT2Position"          "RightOf"
         Option          "MetaModes"             "1400x1050 1400x1050-1280x1024 
1400x1050-800x600 1400x1050-640x480"

When I dist-upgraded to Dapper last week , initially X would not start at all.  
Something had overwritten xorg.conf.  I re-added the lines above and as a 
result I can use any of the external monitors *IF* I start X with that external 
monitor connected.  However, I cannot use 
System|Preferences|Screen_Resolution_Preferences|Resolution to change the 
resolution.  When I click "Apply", the dialog box closes and, simply, nothing 
happens.  "xrandr -s" does work, though.


-- 
Screen Resolution tool (gnome-display-properties) does not change refresh rate, 
resolution in Dapper
https://launchpad.net/malone/bugs/36946

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