FWIW, I just had the same problem in Debian Squeeze with fglrx.
Turns out that the “sleep 1” was a good idea – in Debian, I just installed file-rc to revert to “legacy” (as opposed to parallel) boot ordering, which fixed the problem there.
No idea about what init system *buntu uses these days, but thought you could use the information.
FWIW, I just had the same problem in Debian Squeeze with fglrx.
Turns out that the “sleep 1” was a good idea – in Debian, I just installed file-rc to revert to “legacy” (as opposed to parallel) boot ordering, which fixed the problem there.
No idea about what init system *buntu uses these days, but thought you could use the information.