There are several issues here:
1. The binary drivers ("FATAL: Error running install command for fglrx")
2. A font issue ("font 'fixed' cannot be found")
3. A kernal issue ("kernel panic - not syncing: VFS: Unable to mount
root fs on unknown-block(0,0)")
Number 1 should be fixed by the dist-upgrade that Ralf mentioned.
Number 2 requires editing /etc/X11/xorg.conf... I will file a new bug
about this.
Number 3 is totally unrelated to the X server. This should also get a
separate bug (actually, nailor, you might try a support request first).
Anyway, I'll file a new bug about Number 2 (including the fix) and post
here to let you know the number.
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[feisty] x server wont start after upgrade
https://launchpad.net/bugs/88340
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