Hey, I got the same problem.
Even with the LiveCD
I had to xforcevesa on LiveCD to make the installation.
Also after the install I made an xorg.conf and load the vesa driver instead 
because the radeon one keeps freezing.
If I remove the xorg file then the laptop after some time deadlocks (keyboard 
and clicks, I can move the mouse around though)

Adding the option radeon.modset=0 is not helpful

I attach the lspci, /var/log/dmesg /var/log/messages and Xorg.0.log
files


** Attachment added: "lspci.txt"
   http://launchpadlibrarian.net/47267187/lspci.txt

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Freeze with KMS enabled on Radeon RV350
https://bugs.launchpad.net/bugs/561789
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