fglrx only works with old versions of Ubuntu because AMD hasn't released any 
version of it that works with xserver 1.6
This issue is tracked bug 313027:
https://bugs.launchpad.net/ubuntu/+source/fglrx-installer/+bug/313027

As suggested earlier in this bug, it's recommended that you use the open
source -ati driver instead.

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[ATI driver specific] Ubuntu Jaunty hangs after usplash with gflrx 8.600 or 
8.6002
https://bugs.launchpad.net/bugs/346028
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