Seeing the same thing here, on Ubuntu 12.04. Graphics adapter (lspci) is
"Advanced Micro Devices [AMD] nee ATI Caicos [Radeon HD 7000 Series]",
xserver-xorg-video-ati at "1:6.14.99~git20111219.aacbd629-0ubuntu2".

The "start lightdm" workaround works for me aswell, although I have to
*re*-start it, as it claims to be already running.

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https://bugs.launchpad.net/bugs/1070677

Title:
  Xorg fails to start because of Radeon Issue [(EE) RADEON(0): [drm]
  failed to set drm interface version]

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