I had the same problem with Kubuntu Lucid on my AMD64 machine after
upgrade to kernel 2.6.32-25-generic. I installed the hotfix package and
found that I then also had to run aticonfig --initial -f to get
xorg.conf sorted and after reboot everything was fine

-- 
[MASTER] package fglrx 2:8.723.1-0ubuntu4 failed to install/upgrade: Kernel fix 
for CVE-2010-3081 breaks fglrx
https://bugs.launchpad.net/bugs/642518
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to fglrx-installer in ubuntu.

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