Changing to terminal with ctrl + alt + f1 results in garbage (colored stripes). Changing back is possible.

Xorg.0.log: http://launchpadlibrarian.net/33422466/XorgLog.txt
Many other logs are attached to the original bug report: https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-ati/+bug/448299

ProblemType: Bug
Architecture: amd64
Date: Sat Oct 10 23:51:10 2009
DistroRelease: Ubuntu 9.10
InstallationMedia: Ubuntu 9.10 "Karmic Koala" - Alpha amd64 (20091008)
MachineType: Gigabyte Technology Co., Ltd. EP45-DS3L
Package: xserver-xorg-video-radeon 1:6.12.99+git20090825.fc74e119-0ubuntu3
ProcCmdLine: BOOT_IMAGE=/boot/vmlinuz-2.6.31-13-generic root=UUID=d7c41374-84a6-4e45-b44d-3499b2de2129 ro quiet splash fastboot
ProcEnviron:
 LANG=en_US.UTF-8
 SHELL=/bin/bash
ProcVersionSignature: User Name 2.6.31-13.43-generic
RelatedPackageVersions:
 xserver-xorg 1:7.4+3ubuntu5
 libgl1-mesa-glx 7.6.0-1ubuntu2
 libdrm2 2.4.14-1ubuntu1
 xserver-xorg-video-intel 2:2.9.0-1ubuntu1
 xserver-xorg-video-ati 1:6.12.99+git20090825.fc74e119-0ubuntu3
SourcePackage: xserver-xorg-video-ati
Uname: Linux 2.6.31-13-generic x86_64
XorgConf: Error: [Errno 2] No such file or directory: '/etc/X11/xorg.conf'
XsessionErrors:
 (gnome-settings-daemon:1640): GLib-CRITICAL **: g_propagate_error: assertion `src != NULL' failed
 (gnome-settings-daemon:1640): GLib-CRITICAL **: g_propagate_error: assertion `src != NULL' failed
 (nautilus:1734): Eel-CRITICAL **: eel_preferences_get_boolean: assertion `preferences_is_initialized ()' failed
 (polkit-gnome-authentication-agent-1:1744): GLib-CRITICAL **: g_once_init_leave: assertion `initialization_value != 0' failed
dmi.bios.date: 09/03/2009
dmi.bios.vendor: Award Software International, Inc.
dmi.bios.version: F11b
dmi.board.name: EP45-DS3L
dmi.board.vendor: Gigabyte Technology Co., Ltd.
dmi.chassis.type: 3
dmi.chassis.vendor: Gigabyte Technology Co., Ltd.
dmi.modalias: dmi:bvnAwardSoftwareInternational,Inc.:bvrF11b:bd09/03/2009:svnGigabyteTechnologyCo.,Ltd.:pnEP45-DS3L:pvr:rvnGigabyteTechnologyCo.,Ltd.:rnEP45-DS3L:rvr:cvnGigabyteTechnologyCo.,Ltd.:ct3:cvr:
dmi.product.name: EP45-DS3L
dmi.sys.vendor: Gigabyte Technology Co., Ltd.
fglrx: Not loaded
system:
 distro: Ubuntu
 architecture: x86_64kernel: 2.6.31-13-generic

01:00.0 VGA compatible controller [0300]: ATI Technologies Inc RV770 [Radeon HD 4870] [1002:9440]
 Subsystem: ASUSTeK Computer Inc. Device [1043:0256]

If anything else is needed let me know.