I experienced the same problem. The last working version of kernel was
3.5.0-21. Next version (3.5.0-22) started to give problems, there was a
regression here. I have the same symptoms as described here, and I have
exactly same hardware.

Problems occur again in 3.8.0-19.

Installing proprietary drivers: only beta drivers work properly and I
win the ability to adjust brightness of screen (don't available in
opensource radeon driver), but often I don't get to login screen (boot
sequence stop after kubuntu blue logo disappears), and when I get it,
sometimes I have to go through an abnormal blue screen with vertical
lines during some seconds until login screen appears.

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https://bugs.launchpad.net/bugs/1123024

Title:
  Screen flickering at login screen

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