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I found this problem is not only ATI/AMD related, but NVidia chipsets also seem to suffer from this problem, according to a google search with the following terms: “dvi output” “horizontal lines” “dual dvi”
The artifacts with the HIS videocard with RV350 chipset tested with Ubuntu 8.04 are worse than under windows. While playing a videofile on the first screen, the 2nd screen is showing artifacts quite heavily.
Initially I suspected the glitches were caused by video memory which was not fast enough. At resolutions below 1600×1200 the video was fine on both outputs. Because at a high resolution with 1600×1200 pixels the memory timing may be more critical. If that would be the case, clean power would be critical, so I added exta 100nF decoupling capacitors on top of 4 of the 8 memory chips.
As the decoupling did not change anything at all, I had to look further. A second experiment would be slightly increasing the memory voltage, from 2.50 Volt to 2.55 Volt, by adding a resistor divider at a LM431 reference voltage ic (SOT-23). The voltage increase did not improve anything either.
Because from the two DVI outputs, only the second one had problems, I crossed my mind that a memory timing issue would not be a logical explanation. If it would be, then probably both outputs would suffer. Due to the differences in the DVI output circuitry, it made even more sense that the problem would be in something one of the circuits had which the other didn't have.