It's possible I have the same problem on my Asus F5V with X2300 installed. 
According to 
http://cgit.freedesktop.org/xorg/driver/xf86-video-radeonhd/plain/README my 
card is still supported, but with fglrx I cannot even get my X-Server up and 
running. As soon as KDM is starting it freezes X with the error "/usr/bin/X: 
symbol lookup error: /usr/lib/xorg/modules/extensions//libdri.so: undefined 
symbol: atiddxAbiDixLookupPrivate."
If I use radeon drivers, system works, but I have always display errors like 
flickering in control panel or scrambled play bar in Dragon Player's fullscreen 
mode. With radeonhd those errors are gone, but movies are not fluently played 
back anymore.
Guys let me know I have wrong end of the stick here, but is it possible, that 
my problem is same than yours?

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[RV250][JAUNTY]  X Freezes with Radeon driver EXA/XAA Composite
https://bugs.launchpad.net/bugs/348332
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