I also have a problem. I have a X1250 on a AMD690 Chipset based motherboard 
(Asus MA69G s3h) and, when I install Gutsy, there's no problem until I try to 
use fglrx driver. Then, it just freezes as soon as X.org starts. I have to 
manually uninstall the driver from safe-mode and reboot.
Maybe there's a problem with drivers, I think there's a new version with better 
quality from ATI/AMD. It doesn't give any error message, just freezes.
There's no way to make it work with 3D accel.
Thanks!!

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installed feisty properly but gutsy failed on pc with asus m2a-vm with 
integrated ati radeon x1250
https://bugs.launchpad.net/bugs/161215
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