I experience the very same problems under (k)ubuntu 8.10. The fglrx
driver comming with ubuntu is works, but not perfect (e.g. the
performance is mediocre). When I install newer version of the driver
from the ati website (8.12 or 9.1) I experience a crash of the X server
and a blank screen on startup. I experience the same problem on a
freshly installed openSUSE 11.1.

A few more details can be found on a post of mine on the phoronix forums:
http://phoronix.com/forums/showthread.php?p=60873

** Attachment added: "lscpi.txt"
   http://launchpadlibrarian.net/21973920/lscpi.txt

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fglrx versions newer than 8.543 cause system hang and panic
https://bugs.launchpad.net/bugs/314600
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