Comment 54 for bug 643118

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Tormod Volden (tormodvolden) wrote : Re: [RV350] Desktop corruption – Screen only shows vertical bands

OK, rename it back (I am not sure if this file is being used anyway), and try this command instead:
 sudo -u gdm gconftool-2 --type=bool --set /apps/gnome_settings_daemon/xrandr/turn_on_external_monitors_at_startup false
This should hopefully give you a login screen even with the "bad" package version installed. If so, you can run this on the console as your own user:
 gconftool-2 --type=bool --set /apps/gnome_settings_daemon/xrandr/turn_on_external_monitors_at_startup false
and then be able to log in to Gnome as well.

If the above is correct, it seems like a normally harmless change in gnome-settings-daemon triggered a bug in the radeon driver.