Aha, the cut and paste of the error missed the real issue:

(II) fglrx(0): driver needs X.org 1.4.x.y with x.y >= 99.906
(II) fglrx(0): detected X.org 7.4.2.0
(EE) fglrx(0): atiddxDriScreenInit failed, GPS not been initialized. 
(WW) fglrx(0): ***********************************************
(WW) fglrx(0): * DRI initialization failed!                  *

So fglrx appears to be failing to properly test the xserver version.

What version of -fglrx are you running?  If you're running less than the
version shipped with Intrepid, please upgrade to that, which should work
fine with the 1.5.2 X server in Intrepid.

-- 
No 3D acceleration after distupgrade to 8.10
https://bugs.launchpad.net/bugs/292771
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