Peculiar GNOME / display resolution issue 13.1 upgrade

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http://www.linuxquestions.org – Hardware: Acer Aspire 5536, 4GB RAM, 320 GB hard disk, AMD Athlon X2 64, ATI Radeon graphics. Did a live upgrade from 12.3 to 13.1 by opting for Download first and then upgrade. Took me nearly 12 hours. After that, GRUB option 1, i.e., standard 13.1, does not boot fully. It goes to a white screen with a sad face saying something like "something went wrong, sorry'. However, GRUB2 boots only with the Enlightenment Desktop. If I try GNOME in GRUB2, again I get the same sad face. I notice that while Enlightenment runs under 1366X768 res, GNOME (as in option 1 of GRUB or under GRUB2) tries (HowTos)