X700 is not supported by the current fglrx driver. Your Xorg log file
shows that you're actually still using the open-source Radeon driver.
Fglrx replaces libGL.so and libglx.so with incompatible versions, which
is causing your problems. If you uninstall fglrx the Radeon driver
should work without problems.

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fglrx/glx/xorg crashes on boot 10.4 ati x700
https://bugs.launchpad.net/bugs/561665
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