I have the exact same problem with ATI HD 4850.  I normally don't use
linux, and I'm trying out Ubuntu just today... a bit disappointed with
the graphics issue.  Without the proprietary drivers, everything is too
slow (and I can't choose my monitor's native resolution), so really need
those drivers to work.

On my AMD x4, I get 1 core at 100%, 1 core about 90%, and the other two
cores idle.  top shows Xorg at 100%, so I killed Xorg, X restarted, and
things were back to normal.

By the way, not sure why this is marked as incomplete and tagged as
needing Xorg log.  A previous commenter attached Xorg log.

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Display Preferences causes 100% CPU usage and does not open correctly
https://bugs.launchpad.net/bugs/366757
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