Hi Michael,

Thanks for you advices. I have uninstalled the ATI driver then got to
reset the the ATI driver using  menu > System > Administration >
Hardware Drivers.

It installed correctly and I managed to reboot and login without any
problems :). Moreover I have managed to play videos fine this time. This
looks good...

However when I run glxgears, the windows pops up and start displaying
the wheels but it then freezes... I suspect this issue will be the same
when I want to run 3D destop features which is what I want to do in the
first place.

Any directions for resolving this issue?

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X freeze when playing video with ATI HD 2600 graphic card - ubuntu 8.04
https://bugs.launchpad.net/bugs/298310
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