so compiz was the culprit after all:
compiz (1:0.5.2+git20070912-0ubuntu2) gutsy; urgency=low
                                             
  * compiz breaks rs480, and we don't have the granularity to blacklist
    individual chipsets right now. Blacklist ati.

 -- Matthew Garrett <[EMAIL PROTECTED]>  Thu, 13 Sep 2007 01:53:23
+0100

i suggest you, to disable desktop effects  for good, since, this was
solved by an upgrade i'm closing this bug as fix releases, and changing
the package to compiz, if you disagree with this, feel free to re-open
the bug.

Thanks

** Changed in: compiz (Ubuntu)
Sourcepackagename: xserver-xorg-video-ati => compiz
       Status: Confirmed => Fix Released

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[xpress 200m] doesn't load the gnome desktop
https://bugs.launchpad.net/bugs/133214
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