I too can confirm this bug, running Xubuntu 11.10.
Perhaps it's somehow related to this bug? 
https://bugs.launchpad.net/ubuntu/+source/jockey/+bug/841462
The common error messages in jockey.log are "ERROR: xorg:fglrx_updates: 
get_alternative_by_name(fglrx-updates) returned nothing", and the 
aforementioned bug fix which I linked to mentions "Return the correct 
alternative when dealing with 'updates' driver flavours in 
get_alternative_by_name()." So get_alternative_by_name() could point to the 
culprit of the problem ...

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https://bugs.launchpad.net/bugs/870560

Title:
  installing fglrx (post-release updates) fails

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