I renamed the /usr/share/ati folder to /usr/share/ati_old, and after that the 
installed completed.  
Interesting: no new /usr/share/ati folder was created by the install.
Of course, ATI Catalyst no longer functions...

-- 
package fglrx (not installed) failed to install/upgrade: subprocess new 
pre-installation script returned error exit status 1 - inst_path_default or 
inst_path_override does not exist in /etc/ati  when ATI Drivers are previously 
installed
https://bugs.launchpad.net/bugs/565407
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