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Will Ubuntu still ship with 1.3 xserver? (7.3 comes with 1.4). I'm not sure that ATI and Nvidia binary blobs will be compatible, probably not. Though this IS official xorg release unlike 1.3.
xserver 1.4 for example breaks video driver ABI again, converting (some?) drivers to a new PCI access stuff.
Btw. they modularised everything, so packages can be released independently (there are interdependencies of course). Unfortunately it is a bit painful to download and build each package, though distribution packagers should handle it. Xorg release is a snapshot of certain versions of (most) packages. Edited 2007-09-07 07:56
Looks like a question for Xorg esperts (->xorg mailing list). I guess the answer depends if card(s) is programmable enough to turn off VGA stuff and able to handle remapped IO regions, but also I'm not sure if libpciaccess and kernel stuff is already capable of supporting two video devices at the same time.