Started with an up-to-date Gutsy a couple of days ago.  dist-upgrade to
Hardy.  (I have full disk encryption so I couldn't use the CD.)

Same problem.  I tried PeterPall's fix (disabling Xgl) and it worked,
all is good now.

ATI Radeon Mobility M10.

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[fglrx] DRI not working with fglrx
https://bugs.launchpad.net/bugs/199359
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