Having a similar issue and I see the same entries in your jockey.log file
cat /var/log/jockey.log | tail                 showed me this:

2011-10-12 09:56:33,157 DEBUG: fglrx_updates is not the alternative in use
2011-10-12 09:56:33,213 DEBUG: fglrx.enabled(fglrx_updates): target_alt None 
current_alt /usr/lib/fglrx/ld.so.conf other target alt None other current alt 
/usr/lib/fglrx/alt_ld.so.conf

2011-10-12 09:56:33,213 DEBUG: fglrx_updates is not the alternative in use
2011-10-12 09:56:33,243 DEBUG: fglrx.enabled(fglrx_updates): target_alt None 
current_alt /usr/lib/fglrx/ld.so.conf other target alt None other current alt 
/usr/lib/fglrx/alt_ld.so.conf

Yesterday I upgraded to 11.10 from 11.04 and tried to activate the
"post-release updates" proprietary driver and got the same error message
about the installation of the driver has failed.  I'm going to try to
boot off an older kernel and see if I can activate the driver.

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https://bugs.launchpad.net/bugs/871344

Title:
  Jockey cannot install FGLRX (AMD Graphics Driver)

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