I'm having the same problem when installing 12.10 from the AMD website.
It works fine with the fglrx and fglrx-updates package from Ubuntu
repository, and with 12.9 BETA from AMD website.

The update-alternatives warning highlighted in this bug report is
probably a red herring - the actual problem is most likely as mentioned
in the other report.

https://bugs.launchpad.net/ubuntu/+source/fglrx-installer-
updates/+bug/1069199/comments/3

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https://bugs.launchpad.net/bugs/1068661

Title:
  1002:6740 Unity does not load after installing fglrx-installer Radeon
  HD 6700M Series

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