Patrick: You could try the newest fglrx driver from the AMD's sites.
It's fglrx 9.4.

However, this driver as well doesn't work for me in jaunty, it causes
hard hang after a screen corruption when leaving splash screen and
launching GDM.

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Jaunty: Display doesnt work for ATI Mobility Radeon HD 3470
https://bugs.launchpad.net/bugs/355495
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