If you're running Ubuntu in a virtual machine, this can't be a bug in
fglrx. In the virtual machine you can't access the Radeon graphics
device directly. So you can't use the fglrx driver. Having fglrx
installed without using it can cause problems. So if you have fglrx
installed, uninstall it. It's no use to you inside a virtual machine.

(There are special cases where you can make a dedicated graphics card
directly available to the virtual machine, but then you can't use the
same graphics card in the host OS, Windows 7 in your case. I don't think
this applies to you).

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https://bugs.launchpad.net/bugs/734784

Title:
  desktop crashes out if extra visual effects are applied

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