I got similar issue on HP Compaq 6820s with ATI X1350, even when i am switching 
to console ctrl+alt+F1 i can see noise effect.
In xorg logs i had screen resolution 1440x900 and 55Hz, but on karmic i have 
60Hz.

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[Lucid] Noise-Corruption on screen with ATI mobility 3400
https://bugs.launchpad.net/bugs/546827
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