Workaround: (using live cd)
Boot in safe mode.
After loading, open xorg.conf in a terminal, change "vesa" with "ati" and add 
this line just below
Option     "AGPMode"      "4"
End session and after that everything works.

I suspect this bug is dup of #198149

-- 
Using Hardy Alpha live CD, I cannot use Full Graphics mode on any computer with 
ATI drivers.
https://bugs.launchpad.net/bugs/198149
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