Public bug reported:

Latest update in Ubuntu Precise beta 1 amd 64 broke ATI Binary Catalyst
driver and now Virtualbox says that i have to disable 3D acceleration in
guests machines because 3D acceleration in Host is not supported. At
this time i was using the upstream kernel 3.3 and when i tried
installing ATI drivers in kernel 3.2 of ubuntu precise the system wont
boot. It freezes at startup. I think this is a major issue that i could
deal by having other versions of the kernel installed. Opensource ATI
drivers are fine but do not support 3D acceleration.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: xorg 1:7.6+10ubuntu1
Uname: Linux 3.3.0-030300rc7-generic x86_64
NonfreeKernelModules: fglrx
ApportVersion: 1.94.1-0ubuntu2
Architecture: amd64
Date: Sat Mar 17 14:34:15 2012
InstallationMedia: Xubuntu 12.04 "Precise Pangolin" - Beta amd64 (20120228)
ProcEnviron:
 LANGUAGE=en_US:en
 TERM=xterm
 LANG=en_US.UTF-8
 SHELL=/bin/bash
SourcePackage: xorg
UpgradeStatus: Upgraded to precise on 2012-03-11 (6 days ago)
--- 
ApportVersion: 1.94.1-0ubuntu2
Architecture: amd64
DistroRelease: Ubuntu 12.04
InstallationMedia: Xubuntu 12.04 "Precise Pangolin" - Beta amd64 (20120228)
NonfreeKernelModules: fglrx
Package: xorg 1:7.6+10ubuntu1
PackageArchitecture: amd64
ProcEnviron:
 LANGUAGE=en_US:en
 TERM=xterm
 LANG=en_US.UTF-8
 SHELL=/bin/bash
Tags:  precise
Uname: Linux 3.3.0-030300rc7-generic x86_64
UpgradeStatus: Upgraded to precise on 2012-03-11 (6 days ago)
UserGroups: adm cdrom dip lpadmin plugdev sambashare sudo vboxusers

** Affects: xorg (Ubuntu)
     Importance: Undecided
         Status: New


** Tags: amd64 apport-bug apport-collected precise

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https://bugs.launchpad.net/bugs/958054

Title:
  System wont boot up with ATI Catalyst driver in Ubuntu Precise ATI HD
  5450

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