Hello, 
I have the same problem as ChrisN_uk , this is my story: I installed a Kubuntu 
Feisty, and then a tried the restricted fglrx driver (v.8.37), and modified the 
xorg.conf ( "Driver" "fglrx", "Composite" "0"), I did the aticonfig --initial 
and aticonfig --overlay-type=Xv but It just messed up my xorg.conf so I did 
manually. After reboot all I got was a black screen. I took a look to the 
Xorg.0.log and most of the time it got stuck when loading the fglrxdrm. I had 
the same problem with a Debian Etch distro, It only worked out with the fglrx 
v8.28 from the debian repositories. 
Anyway, but taking a look to the Xorg.0.log.error.The line
(WW) fglrx: No matching Device section for instance (BusID PCI:3:0:1) found
 This error usually appears when the driver doesn´t support your card GPU.

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Ubuntu fails to start with fglrx on radeon x1300
https://bugs.launchpad.net/bugs/117013
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