You shouldn't need to run vesa on it. If you comment out the "vesa" and
Busid lines from xorg.conf, does it work in hardy then? It should use
the ati driver automatically. If not, attach /var/log/Xorg.0.log.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xorg => xserver-xorg-video-ati
Status: New => Incomplete
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Intrepid daily, X Server hangs on ATI Radeon 9200 SE RV280
https://bugs.launchpad.net/bugs/274290
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