Linux 2.6.38 released with fix:
drm/radeon: add pageflip hooks for fusion
drm/radeon: fix page flipping hangs on r300/r400
drm/radeon: fix problem with changing active VRAM size. (v2)
I hope that this release fixed the problem.
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https://bugs.launchpad.net/bugs/709505
Title:
[MASTER] fglrx failed to install/upgrade due to being incompatible
with 2.6.38 kernel
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