This bug was fixed in the package fglrx-installer - 2:8.723.1-0ubuntu2

---------------
fglrx-installer (2:8.723.1-0ubuntu2) lucid; urgency=low

  * debian/fglrx.dirs, fglrx.install.in, fglrx.postinst,
    fglrx.preinst:
    - Make /etc/ati a slave link which points to
      /usr/lib/fglrx/etc/ati. This will avoid issues when
      upgrading packages with user modified files in
      /etc/ati (LP: #559587, LP: #440233).
    - Make sure to remove /etc/ati if it's not a link.
 -- Alberto Milone <alberto.mil...@canonical.com>   Wed, 14 Apr 2010 17:37:14 
+0200

** Changed in: fglrx-installer (Ubuntu)
       Status: Confirmed => Fix Released

-- 
fglrx fails at startup because of missing  amdpcsdb.default + removal leaves 
bad settings in Xorg.conf
https://bugs.launchpad.net/bugs/440233
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