I also have this problem with an ATI Radeon IGP 345M on a Compaq
Presario 2500 laptop.

My screen is less scrambled (I can recognize the login screen and even log in), 
but it still makes the system unusable.
The splash screen works normally for me too and the display is normal on an 
external monitor.

http://ubuntuforums.org/showthread.php?t=526924
http://www.linuxquestions.org/questions/showthread.php?t=577468


** Changed in: xserver-xorg-video-ati (Ubuntu)
       Status: New => Confirmed

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Screen displays garbage
https://bugs.launchpad.net/bugs/133192
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