Make sure you use the latest ati driver, see
https://wiki.ubuntu.com/XorgOnTheEdge
Try xrandr to configure the two screens, see
http://www.intellinuxgraphics.org/dualhead.html
What gui do you use to change mirror settings?
Please attach /var/log/Xorg.0.log
** Changed in: xserver-xorg-video-ati (Ubuntu)
Sourcepackagename: xserver-xorg-driver-ati => xserver-xorg-video-ati
Assignee: (unassigned) => Tormod Volden (tormodvolden)
Status: New => Incomplete
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[gutsy] X crashes when 2nd monitor is attached to Notebook
https://bugs.launchpad.net/bugs/145620
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Bugs, which is the bug contact for Ubuntu.
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