I can confirm this bug in Ubuntu 8.10.

The driver appears as "ATI/AMD proprietary FGLRX graphics driver" in the
Hardware Drivers section, but can not be enabled.

This is what I get when I probe for my card on the cli:
[EMAIL PROTECTED]:~$ lspci | grep " ATI"
01:00.0 VGA compatible controller: ATI Technologies Inc RV610 video device 
[Radeon HD 2400 PRO]

>From reading posts on the forums and looking at the ATI website, it
looks like the proprietary driver is not compatible with the version of
Xorg (7.4) in use with Ubuntu 8.10.

-- 
ATI Hardware Accelerated Graphics Driver FGLRX will not install or at least CAN 
NOT be Enabled
https://bugs.launchpad.net/bugs/267323
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