I have an integrated Radeon HD 4200 and it works great in Ubuntu 9.10. The open source driver, the fglrx driver from the Ubuntu repository works as well.
I also installed the latest proprietary fglrx driver from ATI, 10.1. Works fantastic even with different bios settings (UMA, SIDEPORT and UMA+SIDEPORT). The package generation failed, but following these steps:
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chmod +x ./ati-driver-installer-10-1-x86.x86_64.run
./ati-driver-installer-10-1-x86.x86_64.run --extract
cd fglrx-install.xxxx/arch/x86_64/usr/lib64/
(Replace "fglrx-install.xxxx" with the name of the directory that the installer created on your system)
ln -s libatiuki.so.1.0 libatiuki.so.1
cd ../../../..
sudo ./ati-installer.sh 10.1 --buildpkg Ubuntu/karmic
sudo dpkg -i *.deb
>>>>
Worked perfectly for me. Make sure to uninstall the flgrx packages from synaptic first.