This should be fixed in Feisty. Please test with Feisty beta or newer and reopen if it doesn't work.
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: None => xserver-xorg-video-ati
Status: Needs Info => Fix Released
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ATI Radeon Xpress 200m not correctly recognized
https://launchpad.net/bugs/26368
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