When I installed Ubuntu 10.10 (or any distro derived from debian) I had a similar problem. I managed to fix it by additing the below line to the Section "Device"and naming the Driver "radeon";
Option "Reverse DDC" "on"
For eg my xorg.conf file would have looked something like;
Section "ServerLayout"
Identifier "X.org Configured"
Screen 0 "Screen0" 0 0
InputDevice "Mouse0" "CorePointer"
InputDevice "Keyboard0" "CoreKeyboard"
EndSection
Section "Files"
ModulePath "/usr/lib/xorg/modules"
FontPath "/usr/share/fonts/X11/misc"
FontPath "/usr/share/fonts/X11/cyrillic"
FontPath "/usr/share/fonts/X11/100dpi/:unscaled"
FontPath "/usr/share/fonts/X11/75dpi/:unscaled"
FontPath "/usr/share/fonts/X11/Type1"
FontPath "/usr/share/fonts/X11/100dpi"
FontPath "/usr/share/fonts/X11/75dpi"
FontPath "/var/lib/defoma/x-ttcidfont-conf.d/dirs/TrueType"
FontPath "built-ins"
EndSection
Section "Module"
Load "record"
Load "glx"
Load "dbe"
Load "dri2"
Load "extmod"
Load "dri"
EndSection
Section "InputDevice"
Identifier "Keyboard0"
Driver "kbd"
EndSection
Section "InputDevice"
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "auto"
Option "Device" "/dev/input/mice"
Option "ZAxisMapping" "4 5 6 7"
EndSection
Section "Monitor"
Identifier "Monitor0"
VendorName "Monitor Vendor"
ModelName "Monitor Model"
EndSection
Section "Device"
Driver "radeon"
### Values: <i>: integer, <f>: float, <bool>: "True"/"False",
### <string>: "String", <freq>: "<f> Hz/kHz/MHz",
### <percent>: "<f>%"
### [arg]: arg optional
#Option "NoAccel" # [<bool>]
#Option "SWcursor" # [<bool>]
#Option "Dac6Bit" # [<bool>]
#Option "Dac8Bit" # [<bool>]
#Option "BusType" # [<str>]
#Option "CPPIOMode" # [<bool>]
#Option "CPusecTimeout" # <i>
#Option "AGPMode" # <i>
#Option "AGPFastWrite" # [<bool>]
#Option "AGPSize" # <i>
#Option "GARTSize" # <i>
#Option "RingSize" # <i>
#Option "BufferSize" # <i>
#Option "EnableDepthMoves" # [<bool>]
#Option "EnablePageFlip" # [<bool>]
#Option "NoBackBuffer" # [<bool>]
#Option "DMAForXv" # [<bool>]
#Option "FBTexPercent" # <i>
#Option "DepthBits" # <i>
#Option "PCIAPERSize" # <i>
#Option "AccelDFS" # [<bool>]
#Option "IgnoreEDID" # [<bool>]
#Option "CustomEDID" # [<str>]
#Option "DisplayPriority" # [<str>]
#Option "PanelSize" # [<str>]
#Option "ForceMinDotClock" # <freq>
#Option "ColorTiling" # [<bool>]
#Option "VideoKey" # <i>
#Option "RageTheatreCrystal" # <i>
#Option "RageTheatreTunerPort" # <i>
#Option "RageTheatreCompositePort" # <i>
#Option "RageTheatreSVideoPort" # <i>
#Option "TunerType" # <i>
#Option "RageTheatreMicrocPath" # <str>
#Option "RageTheatreMicrocType" # <str>
#Option "ScalerWidth" # <i>
#Option "RenderAccel" # [<bool>]
#Option "SubPixelOrder" # [<str>]
#Option "ClockGating" # [<bool>]
#Option "VGAAccess" # [<bool>]
#Option "ReverseDDC" # [<bool>]
#Option "LVDSProbePLL" # [<bool>]
#Option "AccelMethod" # <str>
#Option "DRI" # [<bool>]
#Option "ConnectorTable" # <str>
#Option "DefaultConnectorTable" # [<bool>]
#Option "DefaultTMDSPLL" # [<bool>]
#Option "MacModel" # <str>
#Option "TVDACLoadDetect" # [<bool>]
#Option "ForceTVOut" # [<bool>]
#Option "TVStandard" # <str>
#Option "IgnoreLidStatus" # [<bool>]
#Option "DefaultTVDACAdj" # [<bool>]
#Option "Int10" # [<bool>]
#Option "EXAVSync" # [<bool>]
#Option "ATOMTVOut" # [<bool>]
#Option "R4xxATOM" # [<bool>]
#Option "ForceLowPowerMode" # [<bool>]
#Option "DynamicPM" # [<bool>]
#Option "NewPLL" # [<bool>]
#Option "ZaphodHeads" # <str>
Option "Reverse DDC" "on"
Identifier "Card0"
Driver "radeon"
BusID "PCI:240:16:0"
EndSection
Section "Screen"
Identifier "Screen0"
Device "Card0"
Monitor "Monitor0"
SubSection "Display"
Viewport 0 0
Depth 1
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 4
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 8
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 15
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 16
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 24
EndSubSection
EndSection
If you don't have an xorg file (as newer versions of ubuntu do not generally come with one) one can be created by running;
Xorg -configure
This seems to have done the trick with all debian based distros that I have since installed on my G5. You can see more details on the link below;
http://manpages.ubuntu.com/manpages/precise/man4/radeon.4.html
I hope that helps.