This appears to be fixed in the next version of fglrx:
http://ati.cchtml.com/show_bug.cgi?id=99#c65

I don't know if that will make it into Ubuntu 11.10 or not.

** Changed in: gnome-shell (Ubuntu)
       Status: Confirmed => Triaged

** Changed in: gnome-shell (Ubuntu)
   Importance: Undecided => High

** Bug watch added: ATi Linux Platform Bugs #99
   http://ati.cchtml.com/show_bug.cgi?id=99

** Bug watch added: Debian Bug tracker #632098
   http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=632098

** Also affects: gnome-shell (Debian) via
   http://bugs.debian.org/cgi-bin/bugreport.cgi?bug=632098
   Importance: Unknown
       Status: Unknown

** Summary changed:

- Nautilus panel appears under gnome shell panel
+ GNOME Shell display problems with FGLRX

** Package changed: gnome-shell (Ubuntu) => fglrx-installer (Ubuntu)

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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/838577

Title:
  GNOME Shell display problems with FGLRX

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