I can confirm this bug. After enabling restricted driver X fails to start.
01:00.0 VGA compatible controller: ATI Technologies Inc RV370 [Sapphire X550
Silent]
Works flawlessly in Feisty.
** Changed in: linux-restricted-modules-2.6.22 (Ubuntu)
Sourcepackagename: restricted-manager => linux-restricted-modules-2.6.22
Status: Unconfirmed => Confirmed
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Restricted drivers manager does not load fglrx module
https://bugs.launchpad.net/bugs/119344
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