That version of fglrx lacks support for xserver 1.10 so can't be
installed.  However we got an updated driver today that should fix it.
But since beta is frozen right now, you'll have to install manually or
wait until post-beta1. See:

https://lists.ubuntu.com/archives/ubuntu-x/2011-March/001065.html

** Changed in: fglrx-installer (Ubuntu)
       Status: New => Fix Released

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https://bugs.launchpad.net/bugs/745498

Title:
  package fglrx 2:8.801-0ubuntu3 failed to install/upgrade: fglrx kernel
  module failed to build

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