>From the blog in question here is the solution in a nutshell:

There were issues with the AMD proprietary driver (“fglrx”) for both my
5770 and 5870 graphics. After removing the proprietary AMD driver, some
residual issues still persist.

sudo apt-get remove --purge fglrx fglrx_* fglrx-amdcccle* fglrx-dev* 
xorg-driver-fglrx
sudo apt-get remove --purge xserver-xorg-video-ati xserver-xorg-video-radeon
sudo apt-get install xserver-xorg-video-ati
sudo apt-get install --reinstall libgl1-mesa-glx libgl1-mesa-dri 
xserver-xorg-core
sudo mv /etc/X11/xorg.conf /etc/X11/xorg.conf.backup

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

-- 
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/875038

Title:
  Cannot set dual display with radeon driver on Oneiric

To manage notifications about this bug go to:
https://bugs.launchpad.net/unity/+bug/875038/+subscriptions

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