I have KDM (but that's not a difference AFAIK). I made steps:

1) Installed xorg-video-fglrx (or something that sound similar)
2) run:
sudo aticonfig --initial
in console
3) reboot

And it worked like a charm...

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