It sounds like perhaps you have an inconsistent system that got borked on
upgrade.
Could you try Mario's suggestion from this other bug?
https://bugs.edge.launchpad.net/ubuntu/+source/fglrx-installer/+bug/146515/comments/18
** Changed in: fglrx-installer (Ubuntu)
Status: Incomplete => Confirmed
** Changed in: fglrx-installer (Ubuntu)
Status: Confirmed => Incomplete
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Failed to Install ATI/AMD FLGRX Drivers on Ubuntu 8.10
https://bugs.launchpad.net/bugs/292782
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