@Abhijit: I don't think the xorg.conf that gpu-manager generates is
causing your problem (I don't see anything wrong in the X log) but let's
see what happens when the gpu-manager is disabled. Please follow these
steps:

1) sudo nano -w /etc/default/grub

2) Add "nogpumanager" in the following line (within the quotation marks)
e.g. if you have this line:
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash"
it should look like this:
GRUB_CMDLINE_LINUX_DEFAULT="quiet splash nogpumanager" 

3) Press CTRL+X to save and exit

4) sudo update-grub

5) Reboot

6) Make sure that the following command returns true:
grep nogpumanager /proc/cmdline && echo true || echo false

7) If it returns true, regenerate the xorg.conf
sudo aticonfig --adapter=all --initial

8) Reboot and see if it all works (attach your /var/log/Xorg.0.log and
/etc/X11/xorg.conf)

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https://bugs.launchpad.net/bugs/1310489

Title:
  xorg.conf overwritten by booting system

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