Thanks for you bug report. I too am running Edgy and noticed that
section of control center making strange changes to my xorg.conf file.
However, I didn't see it remove the fglrx video driver.
** Changed in: meta-kde (Ubuntu)
Sourcepackagename: meta-kde => kdebase
Status: Unconfirmed => Confirmed
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"System setting -> Monitor&Diplay -> Power saving" ruins xorg.conf
https://launchpad.net/bugs/76123
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