I am getting the same error, with the latest, greatest driver, on a new
computer with ATI X1250 integrated on an ASUS M2A-V motherboard.

Interestingly, everything worked correctly until I installed
UbuntuStudio, which installs the rt kernel. I couldn't get fglrx to work
with the rt driver, so I reinstalled the generic kernel, the restricted
modules, and the fglrx driver.

Restricted Drivers Manager says the ATI proprietary driver is enabled
and running.

Happy Trails,

Loye Young

** Attachment added: "Xorg.0.log"
   http://launchpadlibrarian.net/12728436/Xorg.0.log

** Changed in: linux-restricted-modules-2.6.24 (Ubuntu)
       Status: Incomplete => Confirmed

-- 
No DRI using fglrx through restricted driver manager
https://bugs.launchpad.net/bugs/194892
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