Thanks for your comment on the upstream bug.  Sounds like the issue is
resolved now so I'll close this bug report.

"The problem seems to be resolved in Ubuntu 10.04 Alpha 2 with kernel 2.6.32,
X.org 7.5 with X-Server 1.7. I boots and instals normally, compiz is working as
well."


** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: Triaged => Fix Released

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[R580] Black screen with artifacts after boot
https://bugs.launchpad.net/bugs/392531
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