My adapter is:
ATI Technologies Inc Radeon Mobility M7 LW [Radeon Mobility 7500]

My problem description is the following:
After Grub finishes I see "Starting..." string on the black screen, and the 
font of the string changes. But right after that the screen becomes completely 
black and I get a large underscore cursor blinking on the top left corner of 
the screen.

This black screen with cursor stays there for about 3 minutes (Feisty
boots much faster on the same machine, I don't understand), and right
after that (i.e. after X loads) I can see the famous Ubuntu login screen
with brown background. Thereafter, I don't have any problems. This has
been the case since fresh install.

Since my problem occurs before X loads and after that everything is fine, I 
wasn't too hopeful that new Xserver driver would solve my problem. But  I've 
installed the latest driver from Tormod's page:
xserver-xorg-video-ati - 1:6.7.195+git20071026-0ubuntu0tv

Since it did not solve my problem, I've also added the following lines to 
xorg.conf later on:
Option          "LVDSBiosNativeMode"    "false"
Option          "DRI"                   "off"

Nothing changed.

Since I don't have any problem after X loads, my situation is not so
bad. But any suggestions are welcome.

-- 
ATI Driver Gets Black Screen on Radeon 7500 Mobile (Regression)
https://bugs.launchpad.net/bugs/132716
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