Linux 2.6.38 released with fix:
      drm/radeon: add pageflip hooks for fusion
      drm/radeon: fix page flipping hangs on r300/r400
      drm/radeon: fix problem with changing active VRAM size. (v2)

I hope that this release fixed the problem.

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https://bugs.launchpad.net/bugs/709505

Title:
  [MASTER] fglrx failed to install/upgrade due to being incompatible
  with 2.6.38 kernel

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