Seems fixed for me as well (I tried on 3-4 ati cards) Moving to "Fix released" feel free to change back to Unconfirmed if I'm wrong.
** Changed in: linux-restricted-modules-2.6.20 (Ubuntu)
Status: Unconfirmed => Fix Released
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fglrx on feisty breaks consoles
https://launchpad.net/bugs/82084
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