The solution for me was to download a new kernel, the only problem was getting the ATI driver to work. Make sure you download the linux-headers file too, you need the _all and _arch(i386 or amd64). I got the ati driver by using this shell script.
Then you have to run it without X running, type ctrl alt f1. If you run it with the -z option then it won’t restart X, after its done reboot. Not sure why it was using 700+ MB of ram on boot, now its 300 MB or a little under. Guess the ubuntu kernel doesn’t like my hardware.
You might want to run the install script with the -v option, and specify the version, the 10.5 driver works better for me then the newer 10.6. Use -v 10-5 to install 10.5.
If you have the ATI driver installed from ubuntu, you might want to remove it first.
sudo apt-get remove fglrx fglrx-amdcccle
sudo rm -fr /usr/lib/fglrx
Reboot and then run the installer script.
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