@coldReactive: I did not install the latest drivers. I still use the
drivers that came with ubuntu and only replaced the control file located
in /etc/ati

I've only downloaded the latest drivers to extract the control file, not
to install it :)

So keep your (working) drivers and extract the latest *.run file by adding the 
option --extract in a terminal.
Then replace your current "control" file with the extracted one (as described 
above)

Please notice, that this only may help, if your graphics card is already
WORKING and you only want to get rid of the watermark.

If your graphics card stopped working with the drivers, that come with
ubuntu 10.04 you could try to install an older one and then replace the
control file.

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Watermark "AMD unsupported hardware" is displayed
https://bugs.launchpad.net/bugs/568015
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