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[afoglia <afoglia@xxxxxxxxx>]

Yes and no.  I did six normal boots with 2.6.38-7.35, then realized
there was an update, and booted that both normally and in recovery and
here's what I saw

2.6.38-7.36 normal, 6 boots, 5 reached gdm login screen, 1 gdm started but hung before login window appeared (only one of the 5 successful boots showed the plymouth boot screen)
2.6.38-7.36 recovery mode, 5 boots, all hung with the monitor off, no plymouth, brightness key did nothing.
2.6.38-7.35 normal, 6 boots, 3 hung with monitor off, 3 reached gdm

Since I still can't boot in recovery (and I don't see anything in the
changelog for -7.36 obviously related), I'd say the bug is still there.

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https://bugs.launchpad.net/bugs/727620

Title:
  [Radeon HD 5650 and 5470] Driver crash during recovery boot and in
  normal boot (Regression from 2.6.38-3 to -4)