I have exactly the same problem on Asus z96j, which does also have an x1600 Mobility at 1680x1050 (another odd resolution). I haven't tried livecd's for a while though - I always install the system with the alternative installer, so I have only experienced it just after the installation. I have tried Feisty Herd 3 recently and the same problem persists although easily fixable (for me) with installation of the proprietary drivers, at described in the wiki. Does anyone know whether this is upstream and will be fixed in Xorg 7.2 or something like that?
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