Your logs indicate that you're still using the radeon driver. Also, the 
radeonhd driver doesn't even support your card.
http://wiki.x.org/wiki/radeonhd#head-cc89624fd96105127892119323e209b3d80e137d

I'm not sure what you did to fix it, but it wasn't fixed by using the
radeonhd driver.

-- 
full resolution requires radeonhd but not suggested
https://bugs.launchpad.net/bugs/370103
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