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ati's config tool works pretty good for detecting all avaliable resolutions.
I had the same issue, and used fglrx... fixed it. You can also use X's OSS drivers, radeon, and they work well (in fact, I had an easier time getting xv to work by using their 2d drivers..., but I digress).
I agree, if you are going to autoconfig everything, at least get it right.
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