According to the upstreamed bug report, this is actually an issue in the
kernel, so refiling to the kernel team.

** Tags added: xorg-needs-kernel-fix

** Package changed: xserver-xorg-video-ati (Ubuntu) => linux (Ubuntu)

** Changed in: linux (Ubuntu)
       Status: Triaged => New

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[HD 3650] cannot start gnome X in intrepid (gray screen with horizontal thin 
flashing black lines)
https://bugs.launchpad.net/bugs/272406
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