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 -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/745498 Title: package fglrx 2:8.801-0ubuntu3 failed to install/upgrade: fglrx kernel module failed to build -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs