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0e1f616
(Get the code!)
That option in xorg.conf is only used if KMS is not in use, and it is by default. You can add radeon.modeset=0 to your boot stanza if you want to use it through xorg.conf. Like madbiologist said, dynpm is only available with KMS on a 2.6.34 kernel, but you can use the dynclks module parameter to enable a bit more power savings.