solution:
Download amd driver pack directly from amd's website and then follow
instructions taken from forum
sudo apt-get install build-essential cdbs dh-make dkms execstack
dh-modaliases fakeroot
cd ~/; mkdir catalyst12.4; cd catalyst12.4/
wget
http://www2.ati.com/drivers/linux/amd-driver-installer-12-4-x86.x86_64.run
chmod +x amd-driver-installer-12-4-x86.x86_64.run
./amd-driver-installer-12-4-x86.x86_64.run --extract driver
cd driver/common/lib/modules/fglrx/build_mod/
wget -O fglrx.patch http://ubuntuone.com/5gNgEmVfzs3ytD5QZ2YGCi
but the patch has to be modified by changing 3,2,0 to 3,0,0
patch -p1 < fglrx.patch
cd ~/catalyst12.4/driver/
./ati-installer.sh 8.961 --buildpkg Ubuntu/precise
cd ../
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https://bugs.launchpad.net/bugs/992912
Title:
package fglrx 2:8.723.1-0ubuntu6 failed to install/upgrade: fglrx
kernel module failed to build
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