Hello, I own a iMac G5 rev C (PowerMac12,1) like you (but 20", 2,1GHz version). I have the same problem. I reached to configured xorg like described in http://wiki.ubuntu.com/iMacG5revC .
This bug is confirmed.
** Changed in: Ubuntu
Status: Unconfirmed => Needs Info
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iMac 1.9Ghz: X fails to load under Edgy
https://launchpad.net/bugs/55224
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