XBMC hangs on splash @ 1080p

[abyme]

Ubuntu 8.04 patched up to date 9/17/2008
XBMC - Built on Sep 17 2008 (SVN:15613)
Log: http://pastebin.ca/1211013
ATI FireGL T2 (onboard), Pentium4m 2.0ghz.

Everything runs fine at 1360x768, but when setting screen resolution to 1080p and running XBMC, it hangs on the splash screen. Please, let me know the error of my ways :;):

[abyme]

I should mention this is the PPA install; same results on ATi 8.6, 8.8, and 8.9 drivers (manual install of the drivers).

Also, I grabbed the latest and built it manually and get the same result - works at 1360x768 but not 1920x1080 (1080p). I can see the desktop at 1080p, but XBMC hangs at the splash for 5+ minutes before I just have to powercycle the machine.