I have a ATI MOBILITY RADEON X600 SE and have the same problems.
Jaunty can't run fglrx.  

fglrx BREAK ubuntu, the open source driver not have enough power.

This need to be fixed before 9.04!! Go ATI release your new drivers such
as open source!!

+1

-- 
MASTER: fglrx does not support xserver 1.6
https://bugs.launchpad.net/bugs/313027
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