No, not after grub, it hangs between usplash and xsplash - ie, when X is
tried to start. And it's not just a hang where one can Ctrl+Alt+F2 into
a virtual terminal, it's actually a kernel panic. And I tried installing
through Synaptic, Hardware Drivers, and the .run file from ATI AMD
themselves, all produce the same problem.

-- 
fglrx causes kernel panic on karmic final amd64
https://bugs.launchpad.net/bugs/464525
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which is subscribed to fglrx-installer in ubuntu.

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