Have you tried it with the latest Catalyst driver (Catalyst 10.6, driver
release 8.743)?
To update using generated Ubuntu packages, download Catalyst into an
empty directory and run
ati-driver-installer...run --buildpkg
dpkg --install *.deb
aticonfig --initial -f
and reboot.
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fglrx fails to identify attached monitor, displays blank screen
https://bugs.launchpad.net/bugs/560570
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