wine crashed with "Error of failed request: GLXBadContext" fglrx & AIGLX are enabled

Running Hardy with current updates as of Feb. 04, 2008.

When AIGLX is enabled trying to start a program in wine results in the following:
libGL error: drmMap of framebuffer failed (Cannot allocate memory)
libGL error: reverting to (slow) indirect rendering
X Error of failed request: GLXBadContext
  Major opcode of failed request: 162 (GLX)
  Minor opcode of failed request: 5 (X_GLXMakeCurrent)
  Serial number of failed request: 23
  Current serial number in output stream: 23

Disabled AIGLX allows the program to run even though it does spit out the following:
libGL error: drmMap of framebuffer failed (Cannot allocate memory)
libGL error: reverting to (slow) indirect rendering

Also when AIGLX is disabled there is pixel corruption in the lower right hand corner of the screen (I think this is a known and already reported fglrx issue however).

System Info:

[/etc/lsb-release]
DISTRIB_ID=Ubuntu
DISTRIB_RELEASE=8.04
DISTRIB_CODENAME=hardy
DISTRIB_DESCRIPTION="Ubuntu hardy (development branch)"

[/var/X11/xorg.conf]
# /etc/X11/xorg.conf (xorg X Window System server configuration file)
#
# If you have edited this file but would like it to be automatically updated
# again, run the following command:
# sudo dpkg-reconfigure -phigh xserver-xorg

Section "Files"
        FontPath "/usr/share/fonts/X11/Type1"
        FontPath "/usr/share/fonts/X11/75dpi/:unscaled"
        FontPath "/usr/share/fonts/X11/100dpi/:unscaled"
        FontPath "/var/lib/defoma/x-ttcidfont-conf.d/dirs/TrueType"
        FontPath "/usr/share/fonts/X11/75dpi"
        FontPath "/usr/share/fonts/X11/100dpi"
        FontPath "/usr/share/fonts/X11/misc"
EndSection

Section "Module"
 Load "i2c"
 Load "bitmap"
 Load "ddc"
 Load "dri"
 Load "extmod"
 Load "freetype"
 Load "glx"
 Load "int10"
 Load "vbe"
 Load "evdev"
 Load "dbe"

 SubSection "extmod"
  Option "omit xfree86-dga"
 EndSubSection
EndSection

Section "ServerFlags"
 Option "AIGLX" "true"
EndSection

Section "DRI"
 Group "video"
 Mode 0666
EndSection

Section "Extensions"
 Option "XVideo" "Enable"
 Option "XFree86-VidModeExtension" "true"
# Option "Composite" "Disable"
EndSection

Section "InputDevice"
 Identifier "Generic Keyboard"
 Driver "kbd"
 Option "CoreKeyboard"
 Option "XkbRules" "xorg"
 Option "XkbModel" "pc105"
 Option "XkbLayout" "us"
EndSection

Section "InputDevice"
 Identifier "TrackPoint"
 Driver "mouse"
 Option "CorePointer"
 Option "Device" "/dev/input/mice"
 Option "Protocol" "ExplorerPS/2"
 Option "Emulate3Buttons" "on"
 Option "Emulate3TimeOut" "50"
 Option "EmulateWheel" "on"
 Option "EmulateWheelTimeOut" "200"
 Option "EmulateWheelButton" "2"
 Option "YAxisMapping" "4 5"
 Option "XAxisMapping" "6 7"
 Option "ZAxisMapping" "4 5"
EndSection

Section "InputDevice"
 Identifier "UsbMouse"
        Driver "evdev"
        Option "evBits" "+1-2"
        Option "keyBits" "~272-287"
        Option "relBits" "~0-2 ~6 ~8"
        #Option "Buttons" "10"
        #Option "ZAxisMapping" "4 5"
EndSection

#Section "InputDevice"
# Identifier "UsbMouse"
# Driver "mouse"
# Option "Protocol" "auto"
# Option "Device" "/dev/input/mice"
# Option "Emulate3Buttons" "no"
# Option "ZAxisMapping" "4 5"
# Option "Buttons" "3"
#EndSection

Section "Monitor"
 Identifier "LCD"
 Option "DPMS"
EndSection

Section "Device"
 Identifier "FireGL"

 VendorName "ATI Technologies"
 BoardName "Mobility FireGL V5250 (M56GL)"

 Driver "fglrx"

 # True for 3D, false for power saving
 Option "DRI" "true"

 # Video Overlay for the Xv extension
 Option "VideoOverlay" "True"

 # OpenGl Overlay - Note: VideoOverlay disabled with OpenGL enabled
 Option "OpenGLOverlay" "False"

 # This is to keep fglrx from corrupting the fs buffer which Wine needs
 Option "UseFastTLS" "2"

 Option "DynamicClocks" "on"
 Option "XaaNoOffscreenPixmaps"

  Option "XaaNoOffscreenPixmaps"
  Option "FSAADisableGamma" "no"
  Option "CapabilitiesEx" "0x00000000"
  Option "ScreenOverlap" "0"
  Option "FSAAMSPosY0" "0.000000"
  Option "FSAAMSPosY1" "0.000000"
  Option "mtrr" "off"
  Option "FSAAMSPosX4" "0.000000"
  Option "ForceGenericCPU" "no"
  Option "FSAAMSPosX5" "0.000000"
  Option "FSAAMSPosY2" "0.000000"
  Option "FSAAScale" "1"
  Option "FSAAMSPosY3" "0.000000"
  Option "Capabilities" "0x00000000"
  Option "GammaCorrectionI" "0x00000000"
  Option "no_accel" "no"
  Option "FSAAMSPosY4" "0.000000"
  Option "FSAAMSPosY5" "0.000000"
  Option "FSAACustomizeMSPos" "no"
  Option "FSAAEnable" "no"
  Option "BlockSignalsOnLock" "on"
  Option "GammaCorrectionII" "0x00000000"
  Option "KernelModuleParm" "locked-userpages=0"
  Option "FSAAMSPosX0" "0.000000"
  Option "no_dri" "no"
  Option "VideoOverlay" "on"
  Option "UseInternalAGPGART" "no"
  Option "PseudoColorVisuals" "off"
  Option "StereoSyncEnable" "1"
  Option "FSAAMSPosX1" "0.000000"
  Option "OpenGLOverlay" "off"
  Option "FSAAMSPosX2" "0.000000"
  Option "Stereo" "off"
  Option "FSAAMSPosX3" "0.000000"
  Option "CenterMode" "off"

EndSection

Section "Screen"
 Identifier "Default Screen"
 Device "FireGL"
 Monitor "LCD"
 DefaultDepth 24
 SubSection "Display"
  Viewport 0 0
  Depth 8
  Virtual 1728 1050
 EndSubSection
 SubSection "Display"
  Viewport 0 0
  Depth 16
  Virtual 1728 1050
 EndSubSection
 SubSection "Display"
  Viewport 0 0
  Depth 24
  Virtual 1728 1050
 EndSubSection
EndSection

Section "ServerLayout"
 Identifier "Default Layout"
 Screen "Default Screen" 0 0
 InputDevice "Generic Keyboard"
 InputDevice "TrackPoint"
EndSection