Here's my story with the ATI HD 3850.

While installing 8.10 right off-the-bat I had to run the installation on
the safe graphics mode option otherwise my monitor would show 'black',
but in the sense that there was a signal being sent from the graphics
card like when a screen saver is about to launch.  8.10 provided the
proprietary FGLRX driver v 8.54.3 and it also installed and configured
the ATI Catalyst Control Center 2.1.  At the time I had my TV plugged in
through the S-Video.  I shut down and then restarted the next day for
which boot up was normal, but right after the Ubuntu splash/load orange
bar screen, my monitor went black again and my mouse or keyboard were
unresponsive as I tried to do a CTRL-ALT-F1 to get to the terminal - no
dice.  I had reboot in recovery mode and launch xfix.  After that I was
able to get to my desktop, but appearance was horrible; my resolution
and wallpaper were preserved at 1024x768, but the colors were all
distorted as it I were looking at it with thermal imaging (like the
Predator).  I was still able to make out the menu and sub-menus to
notice that the FGLRX drivers were deactivated in
Administration>Hardware Drivers.  This was expected since I ran the xfix
in recovery mode.  I re-activated and rebooted and my screen was drawn
normally again.  I worked on my machine for a while and then shutdown
for the day.

The next day, same darn thing happened!  I had to redo my steps.  The
following day, same thing.  I went through this process several times
and it was really getting annoying, until I decided to unplug my TV -
the strange thing is that the Catalyst Center showed my TV as display
"1" and my monitor as display "2" - I feel that it should have been the
other way around.  Anyway, after unplugging my TV, I rebooted and my box
was able load itself normally.

The only thing I get now is when watching .avi's on Totem I get the
annoying flicker, but when I do fullscreen mode, the flicker is not
present.  I haven't tried watching DVD's yet.

Compiz effects like the wobbly windows, etc. work fine, but when I do
the ALT-TAB to scroll through the open apps, the little screens are
blank.  I will do some testing on TV-OUT to see what works best.

Is it time to get an Nvdia GeForce 9800?  I won't give up on ATI just
yet and I don't want to go back to Windows on my machine!!

My setup:
ASUS P5Q Pro 
G. Skill 4GB RAM (2x 2GB modules) DDR2 SDRAM
Intel Core 2 Duo E8400 3.0 ghz
Samsung 2232BW 22" Widescreen LCD
Corsair 650W PSU

I've uploaded my xorg log representing the successful boot just in case.


** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/21107205/Xorg.0.log

-- 
Black screen booting on Kubuntu 8.10 Beta Live CD
https://bugs.launchpad.net/bugs/279004
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