I had this problem as well. After trying to install the driver, I
uninstalled all the FGLRX components in gnome-terminal and tried using
Hardware Drivers to install again. It worked (the driver appears as
activated). I restarted and got the proper screen resolution, etc.

That said, I still can't get Compiz working, though that might be a
separate issue.

-- 
package xorg-driver-fglrx 2:8.543-0ubuntu1 failed to install/upgrade: EOF on 
stdin at conffile prompt
https://bugs.launchpad.net/bugs/283765
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