Same problem after updating to Hoary (kernel module fglrx was not loaded).
The installed package xserver-xgl seems to be source of the problem.
I solved this problem with following actions:
1) remove all packages / files related to fglrx
2) remove package xserver-xgl
3) install :
fglrx-kernel-source-envy
fglrx-controle-envy
xorg-driver-fglrx-envy
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Hardy: fglrx not working for ATI card
https://bugs.launchpad.net/bugs/215702
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