Half way solved.
I found some directions here http://ubuntuforums.org/showthread.php?t=870249 
and removed fglrx then reinstalled mesa-dri. Most of my issues are now gone now 
that I have direct render working right however the default Ubuntu (unity?) 
kernel still crashes on load. I managed to get it to send a error report so I 
think this (now old) report is better off closed down unless anyone REALLY 
wants to get me to test some stuff.

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https://bugs.launchpad.net/bugs/1281184

Title:
  Black screen from newer kernel.

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