Update: Completely disabling framebuffer on the kernel command line
(nofb nomodeset nosplash) solves this problem for me too.

On a side note, booting with nofb nomodeset also allows me to use the
radeon driver instead of radeonhd.

-- 
[RV515] radeonhd is incompatible with KMS.
https://bugs.launchpad.net/bugs/568035
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-radeonhd in ubuntu.

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