I suffer from the same bug, and reported it here. 
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1029790
I started doing bisect, but the commit that does this bug is already found, see 
https://bugzilla.redhat.com/show_bug.cgi?id=845745
and the commit is
https://git.kernel.org/cgit/linux/kernel/git/stable/linux-stable.git/commit/?id=2099810f903caa1920f3ef6014fb7f36e4786490
 "pci bus mastering"

How to report that to upstreams?

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https://bugs.launchpad.net/bugs/1029790

Title:
  1002:714a Can't boot without nomodeset option-kernel 3.5.X.X/3.6.X.X
  ATI M52 [Mobility Radeon X1300]

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