Due to a change in the ATI driver for legacy devices, Ubuntu is broken (again).
See
https://bugs.launchpad.net/bugs/1058040
https://bugs.launchpad.net/bugs/1113331
https://bugs.launchpad.net/bugs/1114520
Affects Precise and Quantal. I have included a workaround for Precise in the last link and there is a workaround for Quantal in the first.
This is not a Wine bug.