@raduv
I've got that same card, and more people with it are claiming success doing as 
I've described.. I've detailed it here 
http://tiagoboldt.net/blog/install-fglrx-in-karmic/
Are you sure you've removed all previous configurations?

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fglrx causes kernel panic on karmic final amd64
https://bugs.launchpad.net/bugs/464525
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