I am also experiencing something similar with an 10.10->11.04 upgrade .
I tried changing to 'Driver "ati"' in the config (as suggested above)
but the screen then becomes unusable (before I was at least able to
access the physical terminals).

DistroCodename: natty
DistroRelease: Ubuntu 11.04
DistroVariant: ubuntu
InstallationMedia: Ubuntu 10.10 "Maverick Meerkat" - Release i386 (20101007)
Package: fglrx 2:8.840-0ubuntu1
PackageArchitecture: i386
ProblemType: Bug
ProcEnviron:
  PATH=(custom, user)
  LANG=en_GB.UTF-8
  SHELL=/bin/bash
ProcVersionSignature: Ubuntu 2.6.38-7.39-generic-pae 2.6.38
SourcePackage: fglrx-installer
Tags:  unity-2d natty ubuntu
Uname: Linux 2.6.38-7-generic-pae i686
UpgradeStatus: Upgraded to natty on 2011-04-03 (0 days ago)
version.libgl1-mesa-glx: libgl1-mesa-glx 7.10.1-0ubuntu3
version.xserver-xorg: xserver-xorg 1:7.6+4ubuntu1

** Attachment added: "Xorg.0.log"
   
https://bugs.launchpad.net/ubuntu/+source/fglrx-installer/+bug/747729/+attachment/1973044/+files/Xorg.0.log

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You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to fglrx-installer in Ubuntu.
https://bugs.launchpad.net/bugs/747729

Title:
  fglrx crashes X server on startup

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