I guess that's because debconf and xorg.conf had inconsistent values, so that 'fglrx' ended up being the 'old free driver'.
** Changed in: restricted-manager (Ubuntu)
Importance: Undecided => High
Assignee: (unassigned) => Martin Pitt
Status: Unconfirmed => In Progress
Target: None => ubuntu-7.04
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Breaks X when disabling fglrx
https://launchpad.net/bugs/92524
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